Tom Lee, the managing partner at Fundstrat Global Advisors, is known for his predictions about Bitcoin (BTC). He recently made another forecast, stating that he believes the price of Bitcoin could reach six-figure levels before the 2024 block reward halving event. This means that according to Lee, Bitcoin’s value could soar to over $100,000 before the halving occurs.
Bitcoin Price Prediction: $140,000 – $180,000 by April 2024, says Lee
Tom Lee, the managing partner at Fundstrat Global Advisors, is optimistic about the potential impact of a spot Bitcoin exchange-traded fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC). He believes that such approval could trigger a significant rally in Bitcoin’s price, leading to it reaching a range between $140,000 and $180,000 before the block reward halving in April 2024. If his prediction comes true, it would correspond to a remarkable 380% to 520% increase in Bitcoin’s value based on current prices.
Tom Lee’s prediction about Bitcoin’s potential price surge is influenced by Sean Farrell’s thesis, who is the head of cryptocurrency strategy at Fundstrat Global Advisors. According to Farrell, if a spot Bitcoin exchange-traded fund (ETF) is approved by the U.S. Securities and Exchange Commission (SEC), it could increase the daily demand for Bitcoin by five times. Currently, the Bitcoin market has a balanced daily block reward and demand of $25 million each.
However, Farrell foresees that the approval of a spot Bitcoin ETF would create an additional daily demand of $100 million, resulting in a total daily demand of $125 million, far exceeding the current daily supply of $25 million.
Based on Farrell’s predictions, a price calculation indicates that Bitcoin’s value could reach a balance between $140,000 and $180,000 before the block reward halving in April 2024. This significant price increase would be a substantial jump from the current levels, according to their analysis.
SEC Under Pressure to Approve Spot Bitcoin ETF
Lee thinks that if BlackRock, the world’s largest asset management firm, applies for a spot Bitcoin ETF, it could influence the SEC to approve it. This influence is known as the “BlackRock effect.”
Currently, Bitcoin’s price is $29,491, and it has increased by 1.02% in the last 24 hours.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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