Bitcoin bull Tom Lee of Fundstrat Global Advisors says the crypto king is poised to launch nearly 420% from current prices if the right fundamentals align.
In a new CNBC interview, Lee says crypto depends on monetary policy and benefits from cooling inflation as central bank easing can be expected soon after.
“I think crypto is the remaining allocation based on what the central bank could do. And of course Bitcoin separately has this catalyst as the ETF – where we are in the window where we will see the potential for SEC approval of a spot Bitcoin ETF.
The investor says the approval of a spot-based Bitcoin exchange-traded fund (ETF) could be the catalyst that sends BTC past six figures. Without the spot ETF, Lee says Bitcoin still has a tailwind from next year’s halving, but that alone won’t be enough to push BTC above $100,000.
“If the place Bitcoin [ETF] is approved, I think demand will be greater than Bitcoin’s daily supply, and so the clearance price is… over $150,000. It could even be $180,000…
There are still upside catalysts because of the halving next year, so you’re going to have another drop in supply, so the clearance price should be up, but it’s not going to be six figures.
Earlier this week, former U.S. Securities and Exchange Commission (SEC) official John Reed Stark said a spot-based Bitcoin ETF would likely be approved by the SEC if a Republican is elected president in November 2024.
“Given the partisan divide that has emerged regarding crypto, especially with the SEC, my view is that if a Republican is elected president of the US in 2024, the list of Republicans nominated to the SEC is likely:
1) Significantly reduce the SEC’s crypto enforcement efforts, likely primarily filing fraud cases, shifting efforts away from charging pure registration violations (such as the failure of a crypto trading platform to register as an exchange, broker dealer and clearing company); And
2) Become much more receptive to getting a Bitcoin spot ETF approved and much more likely to take other important crypto-friendly regulatory action.
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