Thomas Lee, the CIO of Fundstrat Capital and CNBC contributor, has alleged that Bitcoin could still trade at six figures before the end of the year.
The crypto market has immensely benefited from Donald Trump’s November 5 election win. For context, the sector’s firstborn, Bitcoin, surged to a new all-time high of $76,943 on Thursday.
Amidst the bullish sentiments, Fundstrat’s chief investment officer, Thomas Lee, has insisted that the global market has more upsides, cryptocurrencies included. In a Friday session at CNBC’s Squawk Box, Lee stated that Bitcoin and small caps would surge tremendously in the near term.
Trump’s Win Good for Bitcoin: Lee
The CNBC contributor stated that prior to the elections, the global market faced turbulence as uncertainties prevailed. However, Trump’s emergence as the 47th US president would spur a rebound and further market upsides for the crypto assets, including Bitcoin.
Lee stated that the impending rally would be massive, citing regulatory changes under Trump and a growing Bitcoin relevance in the global market. Notably, Trump’s pro-crypto stance has been evident from the inception of his electoral campaign, as he has promised to make America the global capital of Bitcoin.
As a result, Lee expects his win to immensely impact Bitcoin’s price. Furthermore, the Fundstrat CIO argued that Trump’s better market experience, owing to lessons from his first tenure, is boosting investor confidence, resulting in the market uptrend since his win.
With Bitcoin being part of the Trump trade, Lee envisions a rise to six figures for the largest cryptocurrency by market cap before the end of the year. He also reviewed his earlier $150,000 Bitcoin call, noting that there is a lot of upside for the premier asset.
Expert Asserts Bitcoin Will Curb Growing US Debts
Notably, one of Trump’s electoral promises is to reduce the growing US deficit, which has now toppled $35 trillion. When asked if the intended debt reduction can be achieved by cutting taxes and spending, Lee noted it would be difficult to accomplish the slash through the means.
However, the CNBC contributor noted that Bitcoin would play a crucial role in the US deficit cut. Lee stated that Bitcoin is a potential Treasury asset, and its long-term appreciation track record could help offset the US debt.
Interestingly, Trump teased the same approach in the past. The US President-elect earlier stated that Bitcoin could help solve America’s growing debt, alleging he would hand its creditors “a little Bitcoin check.”
Meanwhile, discussions to create a US Bitcoin Treasury reserve have gained momentum. Senator Cynthia Lummis noted after Trump’s win that the country would adopt the asset as a hedge against economic uncertainties. A bill flaunted by the pro-crypto Republican senator shows the US would acquire 1 million bitcoins over five years.
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