Posted:
- Exec believes Bitcoin could triple its current market price this year
- As the halving approaches, the pre-halving peak is still not there
Bitcoin is struggling after a rejection that followed when the price tested $53,000 on the price charts. On February 20, the price climbed from $51,774 to just a few dollars below $53,000 before a sharp sell-off occurred. This reversal saw the value drop to a low of $50,760.
Despite this volatility, Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, remains optimistic about the potential of Bitcoin (BTC). Speak Speaking to CNBC, Lee predicted massive growth in BTC prices, stating:
“I think it could be as much as $150,000 this year.”
Factors driving BTC growth
Lee outlined several key factors contributing to this growth trajectory. The hype surrounding Bitcoin Exchange-Traded Funds (ETFs) has already increased demand, while periodic halving events limit supply. Moreover, accommodative monetary policy, which generally supports risky investments, could further fuel the rise. Lee emphasized Bitcoin’s resilience and remained confident that a significant decline in the short term is unlikely. In fact, he emphasized that Bitcoin has held up quite well.
At the time of writing, Bitcoin was exchanging hands at $51,559, down 0.57% in the past 24 hours. However, over the past four weeks the price has risen by approximately 25% CoinMarketCap.
What makes Bitcoin special?
The Co-founder of Fundstrat advocated Bitcoin as sound money. He noted:
“I think it (BTC) proves to be useful. It was great retail value, it was a good risk drug and it’s also incredibly safe.”
He also highlighted Bitcoin’s impeccable track record of not having a single fraudulent entry since its inception. This level of security is unmatched by traditional banking systems, with approximately 6% of transactions considered suspicious, according to Lee.
Time to buy Bitcoin?
With FOMO surrounding the market, many are rushing to take advantage of the pre-halving high. But is this the right move? Scott Melker has the answer. During the final episode of his podcasthe highlighted the infancy of the current cycle and warned against the short-sightedness of a 50-day trading perspective. He claimed,
“It’s always a good time to buy Bitcoin; it just doesn’t mean spending everything you have on Bitcoin today.”
He believes that the market has not yet seen the peak prior to Bitcoin’s halving. Despite a current decline of $2,000 from the high, Melker suggested it is wrong to focus too narrowly on short-term fluctuations. He posited that if the price of Bitcoin remains around $50,000, $49,000 or $52,000 over the next two months, this sets a promising stage for a significant increase by next fall.