Speaking on CNBC’s Squawk Box on February 21, the American businessman said he believes Bitcoin prices will reach $150,000 this year.
Fundstrat head of research Tom Lee has reaffirmed his bitcoin price prediction of $150,000, stating that the cryptocurrency could reach that price level this year. He cited three key reasons driving his bullish price forecast:
“Demand improves with new ETFs, supply reduces with halving, and if monetary policy eases, as we expect, that will support risk assets.”
Describing bitcoin as “sound money,” he emphasized that the cryptocurrency is incredibly safe and is proving to be a good risk asset and an excellent store of value.
Lee, managing partner and head of research at Fundstrat Global Advisors, shared his bitcoin price prediction in an interview with CNBC on Wednesday. Fundstrat is an independent financial research boutique providing strategic market insights.
Lee has more than 25 years of equity research experience. Prior to co-founding Fundstrat, he served as JPMorgan’s chief equity strategist from 2007 to 2014 and previously as a managing director at Salomon Smith Barney.
Will the Bitcoin Rally Continue?
The comments come as BTC appears to have reached resistance at $52,000 following a 30% rally over the past 30 days.
However, Lee seems unfazed, stating that “Bitcoin has held firm” before adding: “I don’t think a drawdown is going to start so soon.” Asked about performance over the next five years, he said: “It’s solid money and I think it’s paying off.”
“It has been a great store of value, it has been a good risk asset and it is also incredibly safe. There has not been a single fraudulent entry on the blockchain since its inception and I don’t think any bank can say that is true of their accounting.”
Lee has been a long-time Bitcoin bull and predicted the asset would reach $200,000 in the coming years.
In the same interview, co-host Andrew Sorkin was ridiculed for thinking that a store of value should maintain the same price. A post on X by user @HodlMagoo said that “Moron of the day goes to @andrewrsorkin for thinking a store of value needs to stay the same price.”
Other Analysts Have a Say
Other analysts suggested that BTC could cool down for a while.
Joel Kruger, market strategist at LMAX Group, suggested caution in the short term, pointing to possible volatility due to changes in central bank policies and the consequences of global macroeconomic weakness, which could temporarily affect crypto. He added that any economic crisis would provide the opportunity to take strategic positions.
Analytics firm Swissblock said in a market update on Wednesday that the overall outlook for bitcoin remains bullish, but it may experience a pullback to lower prices first before resuming its uptrend.
“While the prevailing sentiment suggests a possible continuation of the upward trajectory, the current scenario may necessitate a period of consolidation or even a pullback to the $47.5K support level,” Swissblock analysts said. “This adjustment would serve to alleviate excess volatility and reinforce market stability before possible new bullish movements.”
BTC Price Outlook
The asset was trading down 1% on the day at $51,507. However, it remains within the range-bound channel that formed over the past week.
The cryptocurrency market capitalization remains above $2 trillion, but major assets have begun to cool after a frothy week. Ethereum, Solana, Ripple, and Cardano are all down a couple of percent, with only Binance Coin making gains at the moment.
By Audy Castaneda
