Key Points
- Tom Lee, a crypto market veteran, predicts that Bitcoin will reach $150,000 by 2024.
- The Federal Reserve’s dovish stance on interest rate cuts is considered a contributing factor to this prediction.
Tom Lee, a seasoned crypto market analyst, has recently projected that Bitcoin (BTC) is set to reach a value of $150,000 by the year 2024. Lee, who is a managing partner and head of research at Fundstrat Global Advisors, made this optimistic prediction during an interview on CNBC earlier this month.
Lee’s Bitcoin Price Prediction
Despite the numerous optimistic price targets for Bitcoin this week, Lee stands out with his long-term forecast. He revealed that Fundstrat’s “base case” envisions a six-figure BTC price this year. “Bitcoin’s still, we think, early in an upcycle, so the idea that it could get to $150,000 this year is still within our base case,” he stated.
Such a price would be double the current all-time highs, which were reached in March before a drop to $56,000 at the beginning of this month. Lee attributed his prediction to macroeconomic changes in the United States, particularly the Federal Reserve’s dovish language on interest rate cuts.
Market Reactions and Future Predictions
Lee, a well-known figure in crypto circles for his BTC price predictions, suggested that being long on BTC has been a profitable strategy. He mentioned that being “intellectually stubborn” can be costly while discussing Fundstrat’s investment thesis.
As of May 23, BTC/USD was trading at around $70,000, showing a 15% increase month-to-date. Meanwhile, the latest estimates from CME Group’s FedWatch Tool indicate that markets believe a cut is most likely at the Fed’s September meeting.
The latest minutes of the May meeting of the Federal Open Market Committee (FOMC) underscored the idea that no policy direction was off the table. The document stated, “Participants discussed maintaining the current restrictive policy stance for longer should inflation not show signs of moving sustainably toward 2 percent or reducing policy restraint in the event of an unexpected weakening in labor market conditions.”
