According to Tom Lee, co-founder of Fundstrat, Bitcoin has recently entered a key phase in its market cycle. In a November 29 interview with Wealthion, Lee suggested that Bitcoin could reach $250,000 within the next twelve months. He explained that the upcoming halving, which reduces Bitcoin’s supply, coupled with rising institutional interest, paves the way for a price increase. At the time of writing, Bitcoin has a price of $97,343.
Lee believes that Bitcoin’s price will follow the historical pattern, with a significant increase in value after the halving cycle. He said current conditions make it “very likely” that Bitcoin will reach $250,000 next year. One of the contributing factors is the shift in the political landscape in the United States, with a new administration that has shown support for Bitcoin. Lee pointed out that if the US starts accumulating Bitcoin as part of its strategic reserve, it could give the cryptocurrency even more legitimacy and increase its price.
He also mentioned the strategy of companies like MicroStrategy, which has integrated Bitcoin into its balance sheet with great success. Lee believes that if more companies take a similar approach, it will increase demand for Bitcoin. This, combined with broader support from the US government, could push Bitcoin’s price up even further.
Lee’s bullish prediction isn’t just limited to Bitcoin. He noted that other cryptocurrencies such as Ethereum, Solana and Avalanche could also see significant price gains in the coming year. He sees Bitcoin’s growth as part of a larger trend of increasing institutional adoption, which will drive the entire market forward.
Additionally, Lee sees Bitcoin as an effective hedge against inflation, on par with gold and real estate. He believes that as inflation continues to rise globally, Bitcoin’s fixed supply and decentralized nature will make it an attractive store of value. This is especially true as traditional financial markets face uncertainty.
Popular trader Dave The Wave also weighed in on Bitcoin’s potential, suggesting a $150,000 price target is achievable if Bitcoin follows its performance from October 2023 to March 2024, a period in which the cryptocurrency gained 186%.
Tom Lee’s prediction for Bitcoin is optimistic, with a target price of $250,000 in the coming year. Factors such as the halving cycle, the US government’s pro-Bitcoin stance, and increasing institutional adoption are expected to increase the value of the cryptocurrency. Lee also believes that Bitcoin is becoming an increasingly viable alternative to gold as a store of value.
