Posted:
- Exec believes Bitcoin could triple its current market price this year
- While the halving is getting closer, the pre-halving top is still not in
Bitcoin is struggling after a rejection that followed as the price tested $53,000 on the price charts. On 20 February, the price climbed from $51,774 to just a few dollars shy of $53,000, before recording a sharp sell-off. This reversal saw its value dip to a low of $50,760.
Despite this volatility, Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, remains optimistic about Bitcoin’s (BTC) potential. Speaking to CNBC, Lee projected massive growth in BTC’s prices, stating,
“I think it could be as high as $150,000 this year.”
Factors fueling BTC’s growth
Lee outlined several key factors contributing to this growth trajectory. The hype surrounding Bitcoin exchange-traded funds (ETFs) has already bolstered demand, while the periodic halving events constrict supply. Moreover, the easing monetary policies, which typically support risk assets, can further fuel the ascent. Highlighting Bitcoin’s resilience, Lee remained confident that a significant drawdown is unlikely in the near term. In fact, he emphasized that Bitcoin has been holding up quite well.
At press time, Bitcoin was exchanging hands at $51,559, down by 0.57% over the last 24 hours. However, it has seen an appreciation of around 25% over the last four weeks, as per CoinMarketCap.
What makes Bitcoin special?
The Fundstrat co-founder advocated for Bitcoin as sound money. He remarked,
“I think it’s (BTC) proving to be useful. It’s been a great store value, it’s been a good risk asset it’s also incredibly secure.”
He also underlined Bitcoin’s impeccable record of not having a single fraudulent entry since its inception. This level of security is unmatched by traditional banking systems, where, according to Lee, approximately 6% of transactions are deemed suspicious.
Time to buy Bitcoin?
With FOMO surrounding the market, many are rushing to capitalize on the pre-halving top. But, is it the right move? Scott Melker has the answer. During the latest episode of his podcast, he emphasized the infancy of the current cycle, cautioning against the short-sightedness of a 50-day trading perspective. He stated,
“It’s always a good time to buy Bitcoin; it just doesn’t mean you spend everything you have on Bitcoin today.”
He believes the market has not yet seen the peak preceding the Bitcoin halving. Despite a current $2,000 decrease from its high, Melker suggested that focusing too narrowly on short-term fluctuations is misguided. He posited that if Bitcoin’s price remains around $50,000, $49,000, or $52,000 in the next two months, it sets a promising stage for a significant hike by next fall.
