Tom Lee, the head of research at Fundstrat, has once again made a bold prediction regarding Bitcoin’s price, stating that he believes the pioneer cryptocurrency will hit $150,000. Lee has expressed confidence in Bitcoin’s bullish outlook and is optimistic that the cryptocurrency will soon break free from its current bearish trends. During an interview with CNBC Television, Lee reiterated his previous forecast that Bitcoin will reach new all-time highs by the end of 2024.
Lee initially made his $150,000 Bitcoin prediction back in May, attributing it to a decrease in inflation in the United States and an increase in demand for BTC. Now, he has added that the upcoming redistribution of Bitcoin by Mt Gox, as part of the repayment process to creditors, could be a driving force behind the recent downward pressure on Bitcoin’s price. Mt Gox announced that it will begin repaying $9 billion worth of BTC and Bitcoin Cash in July, leading to speculations of potential sell-offs from creditors.
The anticipation of $9 billion worth of BTC and BCH flooding the market has contributed to Bitcoin’s decline, with the price dropping below $60,000 at one point. Miners also sold off their holdings to invest in more efficient mining equipment, further adding to the selling pressure. However, Lee remains optimistic that Bitcoin will experience a significant rebound in the second half of the year following the conclusion of Mt Gox’s repayment process.
As of now, Bitcoin is trading at $62,523 after crossing the $60,000 threshold. The cryptocurrency recently faced a significant downturn, losing up to 20% due to large outflows from Spot Bitcoin ETFs. Despite this, analysts predict a potential upside for Bitcoin in the third quarter of 2024 as miners’ selling pressure subsides and the overall crypto market stabilizes.
Tom Lee’s prediction of Bitcoin surging to $150,000 is based on a combination of factors, including decreasing inflation in the US, increased demand for BTC, and the upcoming Mt Gox repayment process. While market volatility may continue to impact Bitcoin’s price in the short term, Lee remains confident in a significant rebound in the cryptocurrency’s value in the near future.
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