Key Points
Bitcoin recently faced a setback when its price, after nearly reaching $53,000, fell sharply to $50,760. Despite this, Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, remains hopeful about Bitcoin’s prospects.
Bitcoin’s Potential Growth
In an interview with CNBC, Lee predicted a significant surge in Bitcoin’s prices, suggesting it could reach $150,000 this year. He identified several factors that could drive this growth. These include the anticipation surrounding Bitcoin exchange-traded funds (ETFs) and the periodic halving events that limit supply.
Furthermore, easing monetary policies, which usually support risk assets, could also propel Bitcoin’s rise. Lee emphasized Bitcoin’s resilience, expressing confidence that a major downturn is unlikely in the near future.
At the time of reporting, Bitcoin was trading at $51,559, a 0.57% decrease over the last 24 hours. However, it has appreciated by approximately 25% over the past four weeks, according to CoinMarketCap.
Bitcoin’s Unique Value
Lee, co-founder of Fundstrat, advocates for Bitcoin as a reliable form of money. He believes that Bitcoin has proven its utility as a secure and effective store of value and risk asset.
He also highlighted Bitcoin’s flawless record of maintaining a fraud-free ledger since its inception. This level of security surpasses traditional banking systems, where, Lee notes, an estimated 6% of transactions are considered suspicious.
Is Now the Time to Invest in Bitcoin?
Amidst market FOMO, many are eager to take advantage of the pre-halving peak. However, Scott Melker, in a recent episode of his podcast, warned against the short-sightedness of a 50-day trading perspective.
He asserted that it’s always a good time to invest in Bitcoin, but cautioned against spending all available funds on Bitcoin immediately. Melker believes the market has not yet reached the peak preceding the Bitcoin halving.
Despite a current $2,000 decrease from its high, Melker suggested that focusing too narrowly on short-term fluctuations is misguided. He proposed that if Bitcoin’s price remains around $50,000, $49,000, or $52,000 in the next two months, it sets a promising stage for a significant hike by next fall.
