Bitcoin To Blast Off? Tom Lee Predicts $150k in 2024 Post ETF Approval

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There’s a celebration all around! The recent green light from the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs has stirred considerable interest. Enthusiasts are hopeful for a potential surge in Bitcoin prices, though the current market scenario is more subdued, with Bitcoin holding firm at $45,729.

Will a change come soon? Read on to find out.

Tom Lee’s Bullish Outlook

During a CNBC interview, Tom Lee, co-founder of Fundstrat Global Advisors, shared an exceptionally bullish forecast for Bitcoin. Lee predicts a remarkable rise to $150,000 within the next 12 months and an even more staggering $500,000 within five years. This optimistic outlook is grounded in Lee’s analysis of Bitcoin’s finite supply and the anticipated surge in demand.

In contrast to his upbeat Bitcoin predictions, Lee foresees challenges for the stock market in the first half of 2024, attributed to uncertainties surrounding Federal Reserve policy decisions. While expressing optimism about Bitcoin, he notes the potential risks associated with broader economic factors, estimating a relatively low but significant 20% chance of a recession. He further stresses the importance of monitoring economic indicators, particularly inflation trends and the Federal Reserve’s approach to monetary policy.

Also Read: Bitcoin ETFs Debut in the U.S.: What to Expect on Day One

Gradual Impact of Bitcoin ETF Approval

Despite Lee’s positive outlook for Bitcoin, some analysts caution that the impact of approved Bitcoin ETFs on market prices may be gradual. Based on the Bank of America Bull Market Multiple, Bloomberg Intelligence suggests that up to $4 billion could flow into Bitcoin ETFs on their first day of trading, potentially influencing prices to reach $50,000-$57,000 by the end of the week.

While the cryptocurrency industry celebrates the SEC’s nod to Bitcoin ETFs as a positive stride, the prevailing sentiment is that the immediate impact on market prices will unfold steadily but significantly.