According to U.Today, Bitcoin advocate Tom Lee recently expressed his belief that the markets are well-positioned for a rally. In a recent interview on CNBC, Lee highlighted that the median short interest in stocks has reached its highest level in three years. He stated that a positive catalyst is now needed, and as long as inflation performs better than expected, the markets are in a good position to rally.
Lee also suggested that the market could be nearing a potential bottom. Despite increasing bearish sentiment, he believes that sharp corrections are a normal part of bull market cycles. He said, 'There's a lot of top callers. To me, there's a good opportunity.'
Last week, US Federal Reserve chair Jay Powell admitted that returning inflation to the desired 2 percent target would take longer than anticipated. This statement followed a spike in long-term inflation expectations to the highest level in over a year. According to the BofA credit investor April survey, inflation remains the primary concern for investors. However, nearly half of investors (45%) expect the central bank to achieve a soft landing.
On April 17, the price of Bitcoin fell below the $60,000 level, just days before the halving. This drop was partially attributed to the decreasing likelihood of a June rate cut, based on the most recent inflation data. It is now more likely that there will be hikes or zero cuts rather than three rate cuts this year. Despite this, cryptocurrency bull Mike Novogratz remains convinced that the Federal Reserve will still need to cut rates this year.
