Fundstrat Global Advisors managing partner Tom Lee makes a six-digit forecast for Bitcoin (BTC).
Lee say in a new CNBC interview that Bitcoin could explode by more than 500% from its current level within five years.
When asked about a timeline for its price prediction, Fundstrat’s managing partner says Bitcoin could rise to “about $200,000” within five years.
Bitcoin is trading at $29,982 at the time of writing.
On the rationale for his optimistic thesis, Lee says:
“Bitcoin is very useful. I think there is a tendency in the US to think that the financial system works well for everyone. But for people who have money, it works well.”
Fundstrat’s managing partner says the impact of a spot Bitcoin exchange-traded fund (ETF) authorized in the US is understated.
“I think the Bitcoin ETF, I think people are underestimating how important that will be…
And the multiplier right now [if a Bitcoin ETF is authorized] is about four to one, meaning a dollar of inflow is four dollars to the change in price of Bitcoin’s market cap. So you know if you get a question of $100 billion or $200 billion, that’s $800 billion…”
In the event that spot Bitcoin ETF applications are rejected in the US, Lee says
“[If you don’t get an ETF] then you start relying on some kind of organic network effects. But I do think an ETF is very likely and that would also be a very important and underrated catalyst.”
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Image generated: Midway through the journey