The managing partner of Fundstrat Global Advisors, Tom Lee, is making a six-figure prediction for Bitcoin (BTC).
Lee says in a new CNBC interview that Bitcoin could explode by over 500% from the current level within five years.
Asked to give a timeline for his price prediction, the Fundstrat managing partner says Bitcoin could surge to “something around $200,000 within five years.”
Bitcoin is trading at $29,982 at time of writing.
On the rationale for his bullish thesis, Lee says,
“Bitcoin is very useful. I think in the US there’s a tendency to think the financial system works well for everybody. But for people who have money, it does work well.”
The Fundstrat managing partner says the impact of a spot Bitcoin exchange-traded fund (ETF) getting authorized in the US is being underestimated.
“I think the Bitcoin ETF, I think people underestimate how important that will be…
And the multiplier right now [if a Bitcoin ETF is authorized] is roughly four-to-one, meaning a dollar of inflows is four dollars to the change in the price of Bitcoin’s market cap. So you know if you get a $100 billion or $200 billion of demand that’s $800 billion…”
In the event that spot Bitcoin ETF applications are rejected in the US, Lee says
“[If you don’t get an ETF] then you’re going to rely on sort of organic network effects. But I do think an ETF is very likely and that would also be a very important and underestimated catalyst.”
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