Tom Lee: Bitcoin price could breach $150,000 after ETF approval

If the U.S. Securities and Exchange Commission (SEC) gives the green light to a Bitcoin ETF, the first cryptocurrency could break through the $150,000 mark and approach $180,000. Tom Lee, co-founder of Fundstrat, said.

Gold-backed ETFs have proven themselves on an international scale, but US backing will be the linchpin for the domestic crypto industry, the expert added.

“When the spot Bitcoin ETF is approved, I think demand for it will outpace the daily supply of the asset itself,” he explained.

Earlier, in February 2022 the businessman stated expectations of a ‘huge’ influx of speculative capital into cryptocurrency. However, a few months later he called the level of such funds in the market insufficient.

On June 15, BlackRock filed with the SEC for a spot Bitcoin ETF. Following the financial giant, similar requests were submitted by Valkyrie, Fidelity Investments, WisdomTree and Invesco.

The head of Fundstrat also highlighted the link between digital assets and the broader monetary environment. In his view, stabilising inflation could pave the way for looser market conditions.

This, in turn, could prompt central banks to ease regulatory pressure, creating a favourable backdrop for cryptocurrencies.

Lee noted that the current core inflation in the United States at 4.65% is driven by high readings in the housing market. He forecast that by mid-2024 the figure will fall below 2%.

FSInsight, the firm founded by Lee, predicted that the first cryptocurrency would reach $200,000 in the second half of 2022.