Thomas Lee, CEO of Fundstrat, a financial research firm, has reiterated his bullish outlook on bitcoin, suggesting again that the digital asset is well on its way to reach $150,000 by the end of the 2024 market cycle.
In an interview on CNBC’s Squawk Box on May 7, Tom Lee reaffirmed his previous prediction, expressing strong confidence in bitcoin’s ability to surge dramatically in the near future.
He projected that bitcoin, currently trading at around $62,000, could surpass its previous all-time high and hit $150,000.
Tom Lee’s Predictions
Lee had previously disclosed his optimistic forecast in April during an interview with CNBC Television, where he stated that bitcoin would likely achieve new all-time highs this year, with a potential surge to $150,000 in 2024, and even $500,000 in the long term.
“There’s potentially a huge increase in demand with a Spot Bitcoin approval, so I think in five years something around half a million is definitely achievable,” Lee said in a January interview.
Interestingly, the prominent analyst responsible for the stock-to-flow model (S2F), PlanB, also made similar predictions, stating that bitcoin will reach $500,000 between 2024 and 2028. For the short term, the analyst believes that BTC will reach $100,000 by the second half of the year.
The CEO attributed bitcoin’s price increase to strong demand and the integration of the Rune Protocol, a new token standard for issuing fungible tokens on the Bitcoin Network, which he believes has strengthened the blockchain’s network.
Lee’s bullish projection comes amidst significant volatility and fluctuations in the digital asset market. Bitcoin surged to an all-time high above $73,000 in March, driven by hype and demand for spot Bitcoin ETFs.
However, following the Bitcoin halving on April 20, it experienced a sharp decline, dropping to as low as $57,000 in May.
Despite these fluctuations, Lee remains optimistic about bitcoin’s long-term value, expressing confidence in its robust price fundamentals and foreseeing a potential surge to half a million or more in the coming years.
On the other hand, CEO of Ark Invest, Cathie Wood, recently predicted that bitcoin will reach a monumental $1.5 million by 2030 following the approval of spot BTC ETFs, which resulted in increased institutional interest.
Additionally, Lee discussed the current inflationary situation and economic conditions in the United States. He suggested that inflation in the US is expected to cool off significantly, potentially leading to upward momentum for bitcoin.
Lee indicated that the Federal Reserve has more room to cut rates, which could impact the country’s banking balance sheet. While he did not provide a specific timeline for the drop in US inflation, Lee suggested it could potentially occur by the second half of 2024.
The Fundstrat CEO’s optimistic outlook for inflationary pressures in the US aligns with Bitcoin’s role as a hedge against inflation and a store of value during periods of economic uncertainty.
Notably, Anthony Scaramucci, the founder of SkyBridge Capital, stated that Bitcoin’s existence as a store of value would solidify once the network reaches a billion users.
