The Fed will help Bitcoin reach $500,000 in five years, says Fundstrat’s Tom Lee – DL News

  • The new bull market will see Bitcoin surge to $150,000 in 2024, according to Tom Lee.
  • The Fundstrat executive said it could end up going as high as $500,000 over the next five years.
  • The rise will be driven by three main factors, and will come despite Bitcoin’s links to criminal activities.

Bitcoin could soar as high as $150,000 in 2024, but that’s just the beginning, according to Thomas Lee.

Research firm Fundstrat Global Advisors’s managing partner and head of research appeared on CNBC’s “Squawk Box” on Wednesday, and estimated that Bitcoin will be valued at over $500,000 over the next five years.

Host Andrew Ross Sorkin challenged Lee, asking about criminals who use the digital asset.

“Pirates were the first people that liked gold, so we knew gold was a good store of value,” Lee said.

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Lee made the prediction as the crypto industry is growing increasingly bullish about the prospect of another bull market.

A contributor on CNBC and former JPMorgan analyst, Lee has been a vocal proponent of Bitcoin. In June, he predicted that it would rise to $200,000.

Bitcoin soared past the $52,000 mark earlier in February and is now trading at levels not seen since late 2021.

Several factors have driven the new Bitcoin rally.

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They include increased demand from the newly approved spot Bitcoin exchange-traded funds in the US, and the expected April halving, Lee said.

The halving will cut the rewards for Bitcoin miners in half, thus limiting the supply of the asset, which is expected to drive the price up if demand remains high.

“And if monetary policy eases, which we expect, that’s supportive of risk assets and Bitcoin’s holding up and that’s another reason why I don’t think a drawdown is going to start that soon,” Lee said, referring to highly anticipated interest rate cuts from the US Federal Reserve.

Lee is not the only optimist.

Traders, analysts, online punters and market stakeholders have wagered that Bitcoin will shoot past its 2021 all-time high of $69,000 before the end of June.

Even so, crypto detractors have intensified their warnings about how digital assets are being used by criminals and terrorist organisations.

Criminal use

Lee’s predictions come as the debate about the illicit use of Bitcoin has sharpened in recent months.

The likes of anti-crypto firebrand Elizabeth Warren have warned that cryptocurrencies are used by criminals and terrorists alike, calling for more scrutiny of the industry.

Sorkin challenged Lee, saying that “Bitcoin is a beloved currency for those who were trying to do nefarious things.”

“Criminals don’t trust anybody, but they trust Bitcoin,” Lee replied.

“It’s been a great store of value. It’s been a good risk asset. It’s also incredibly secure,” Lee said.

“There hasn’t been a single fraudulent entry on the blockchain since inception. I don’t think any bank can say that’s true of their P&L and accounting.”

P&L stands for profit and loss statement that makes up a financial report of a company’s revenues, expenses, profits, and losses over a given period of time.

Eric Johansson is DL News’ news editor. Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact them at [email protected] and [email protected].

https://www.dlnews.com/articles/markets/fundstrat-tom-lee-on-why-bitcoin-to-hit-500k-usd-in-5-years/

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