Bitcoin is headed to $180,000 if regulators approve the first spot ETF in the US, Fundstrat’s Tom Lee says
Aug 16, 2023, 2:27 PM EDT
- Fundstrat’s Tom Lee said the approval of a new spot bitcoin ETF could send the token soaring in 2024.
- He told CNBC Wednesday that bitcoin could reach $180,000 next year.
- The strategist still sees upside even if a spot bitcoin ETF doesn’t get approved by regulators.
The world’s largest cryptocurrency by market cap could rocket to a new record high next year if regulators approve the first ever US spot bitcoin ETF, according to Fundstrat’s Tom Lee.
In an interview with CNBC Wednesday, the strategist broke down why a six-figure jump above the previous record high of $69,000 remains in the cards.
“If the spot bitcoin gets approved, I think the demand will be greater than the daily supply for bitcoin,” Lee said. “The clearing price…is over $150,000, it could even be $180,000.”
The Jacobi Bitcoin ETF went live Tuesday in Europe under the ticker BCOIN, but regulators in the US have yet to approve applications for similar funds from asset managers including BlackRock and Fidelity.
Lee maintained that even if the spot ETF is not approved, upside remains because of next year’s bitcoin halving event, which will reduce the number of bitcoins awarded to miners by half.
During the next halving process, miners’ rewards will be reduced from 6.25 bitcoin to 3.125 bitcoin per block, creating a scarcity effect, according to the original whitepaper by Satoshi Nakamoto. Each of the past three halvings have correlated with new record highs within 12 months.
The halving on its own could send bitcoin’s price up sharply, but Lee said it wouldn’t make a six-figure leap without the regulatory approval of the spot ETF in the US.
Separately, he noted that easing macro conditions and Fed policy creates a bullish setup for cryptocurrency across the board.
“Crypto is dependent on monetary policy, so if inflation is cooling, then we can start to bet on forward financial conditions easing and central bank easing sooner,” Lee said. “That’s bullish for crypto or alternative assets.”
As far as traditional assets go, the Fundstrat chief reiterated his call for a new all-time high in the S&P 500 before the end of the year. Even if equities fall 5%-8% in August, there’s still $5.5 trillion in cash on the sidelines waiting to enter the market, he said.
“I think you have an earnings recovery, the Fed may be slowing, interest rates could stabilize and then the cash gets put to work,” Lee said.
Source: Markets Insider
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2022 Dinar Chronicles