Bitcoin Surged to $150,000 This Year, Financial Expert Explains Why

Bitcoin (BTC) is set to rise sharply over the next ten months rally remains to be seen, said the well-known American financial analyst Tom Lee. In his opinion, Bitcoin price could rise to a high of $150,000 this year. In the interview he names three drivers for the possible price explosion.

194% Bitcoin increase

Lee, partner and principal researcher at Fundstrat Global Advisors, was a guest on CNBC’s Squawk Box yesterday. In an interview, he discussed current market trends and the state of Bitcoin.

He shared his extremely optimistic prediction that Bitcoin price could rise to $150,000 this year. At a current interest rate of around $51,000, this would represent an increase of a whopping 194 percent.

The billionaire names three possible catalysts: the upcoming Bitcoin halving, the Bitcoin spot exchange-traded funds (ETFs), and the expected easing of monetary policy.

“With the new ETFs, demand is increasing, with the halving, supply is decreasing, and if monetary policy is eased as expected, that will support risk assets,” Lee said.

Catalysts for Bitcoin under the microscope

The Bitcoin halving will occur sometime in April and will result in a halving of miner rewards or the supply of new Bitcoins. It makes Bitcoin more scarce and has led to massive price increases in the past.

Bitcoin ETFs hit American stock exchanges last month and have been a huge success so far. Hundreds of millions of dollars are currently flowing into the newly launched funds every day, which logically benefits the price.

Finally, Lee refers to possible interest rate cuts by the US Federal Reserve. This would make it more attractive for investors to invest their money in risky assets like Bitcoin.

Read Also:  Why more Bitcoin miners could survive the halving this time

In particular, the upcoming halving and the nasty inflows into Bitcoin ETFs are currently causing enormous optimism in the crypto market. This has not affected the Bitcoin price: it is currently around 20 percent higher than at the beginning of the month. However, according to Lee, this is just the beginning of an impressive bull market.

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