Tom Lee, the head of research at Fundstrat, has once again reiterated his prediction that Bitcoin will skyrocket to $150,000. Despite the current bearish trends in the market, Lee remains optimistic about the future of the pioneer cryptocurrency. In a recent interview with CNBC Television, he emphasized his belief that Bitcoin will reach new all-time highs by the end of 2024.
Lee initially made this bullish forecast back in May, attributing it to the cooling down of inflation in the United States and an increase in demand for Bitcoin. However, he now suggests that the upcoming redistribution of Bitcoin by Mt Gox could be causing the current downward pressure on the price of Bitcoin. Mt Gox is set to start its $9 billion worth of BTC and Bitcoin Cash repayment plans in July, leading to speculations about potential sell-offs from creditors.
The anticipation of a flood of $9 billion worth of BTC and BCH into the market has created a bearish sentiment, triggering stronger selling pressures from investors. This, coupled with miners selling off their holdings to upgrade mining tools, has caused Bitcoin’s price to drop below $60,000 at times. However, Lee believes that once the Mt Gox repayment process is completed, Bitcoin could experience a sharp rebound in the second half of the year.
As of now, Bitcoin is trading at $62,523, having crossed the $60,000 threshold once again. The recent sharp downward trend in the cryptocurrency market, with a 20% crash due to outflows from Spot Bitcoin ETFs, has raised concerns. Nevertheless, analysts are predicting a potential upside for Bitcoin in the third quarter of 2024 as miners’ selling pressure eases off and the broader crypto market stabilizes.
While Tom Lee’s bold prediction of Bitcoin reaching $150,000 is based on various factors such as inflation, demand, and the Mt Gox repayment process, it is essential to consider the potential market impact of these events. The volatility and uncertainties in the cryptocurrency market make it crucial for investors to stay informed and make well-informed decisions based on thorough analysis and research.