Bitcoin price can top $150,000 post-halving, analyst predicts

The bitcoin price might skyrocket to $150,000 in 2024, according to a new prediction shared by analyst Tom Lee on CNBC’s “Squawk Box.”

$500,000

Lee, Fundstrat Global Advisors’ managing partner and head of research, also conceded that bitcoin can reach $500,000 in the next five years.

Previously, Lee had forecast that bitcoin would soar to $200,000. Earlier this month, the leading cryptocurrency, bitcoin, successfully broke $52,000, returning to a high it last saw during the end of 2021.

ETFs

Lee’s optimism around a potential bitcoin price rally owes to two critical factors: the upcoming bitcoin halving in April 2024, which can increase demand for bitcoin amid a drop in bitcoin’s supply, and the launch of multiple spot bitcoin exchange-traded funds (ETFs) this past January. The mainstream crypto ETFs have catalyzed greater demand for bitcoin, potentially making a price jump more likely.

The government’s looming cuts to interest rates are also a contributing factor, Lee said. 

“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,” he explained.

Illicit Financial Activity

Last year, cryptocurrency was also used in $24.2 billion worth of illicit financial activity, but Lee was not convinced that digital assets deserved the negative link to criminality.

“Criminals don’t trust anybody, but they trust bitcoin,” Lee said. “It’s been a great store of value. It’s been a good risk asset. It’s also incredibly secure.”

“There hasn’t been a single fraudulent entry on the blockchain since inception,” he added. “I don’t think any bank can say that’s true of their (profit and loss statements) and accounting.”

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.