Tom Lee Reaffirms Bitcoin Forecast of $150,000 by Year-End

Tom Lee, co-founder of the analytical firm Fundstrat, reiterated his forecast on CNBC for the leading cryptocurrency to reach a price point of $150,000 by the end of 2024.

“I think inflation is going to cool pretty dramatically,” says Tom Lee of @fundstrat. “I don’t know when but it’ll be sometime in the second half of this year.” pic.twitter.com/hPJ1niociE

— Squawk Box (@SquawkCNBC) May 6, 2024

The expert first mentioned this target in January, suggesting the possibility of Bitcoin reaching $500,000 within the next five years.

In February, Lee reaffirmed his forecast. He cited the reduction in asset supply due to the halving and the anticipated easing of monetary policy by the ФРС as reasons.

This time, the analyst pointed to potential “buying in May” following a cryptocurrency sell-off in April. This contradicts the well-known investment adage “sell in May and go away.”

Lee also noted that the U.S. economy is no longer “overheated,” providing the Fed with opportunities to cut the key rate. Such a move would support small-cap stocks, the tech sector, and Bitcoin, the expert believes.

“I think inflation will decrease quite sharply. I don’t know when, but sometime in the second half of the year,” Lee stated.

For these reasons, Fundstrat maintains a base scenario for Bitcoin to reach $150,000 in 2024, he noted.

Lee believes that under the current circumstances, the Fed will also lower rates in the interests of regional banks, which are under significant pressure.

“This harms their balance sheets. The cost of money is quite high, especially compared to the rest of the world,” the analyst opines.

Earlier, the ratio of call and put options on Bitcoin indicated traders’ expectations of a spot price between $70,000 and $100,000 by the end of 2024, according to experts at QCP Capital.