Tom Lee, managing partner and head of research at investment research firm Fundstrat Global Advisors, stated on Thursday that Bitcoin breaking the $100,000 mark could signal a bullish stock market.
Tom Lee stated in an interview with CNBC: 'I believe the surge in Bitcoin, for me, is a breakout of a consolidation pattern that could be a precursor to the S&P 500's performance for the rest of this year.'
Lee pointed out that the rise in Bitcoin reflects the market's preference for risk, 'I believe this also indicates how much capital has been idle over the past few years, either sitting in cash in money markets or waiting to see if the economy can weather the storm.'
Focus on the 'Santa Rally'
Tom Lee stated that investors will have a lot of macroeconomic data to interpret in the coming days, including the November employment report, November Consumer Price Index (CPI) data, and the Federal Reserve's interest rate decision meeting. He added:
I believe that once we get through these events, investors will really be able to start engaging in that 'Santa Claus rally.'
Lee predicted on December 2 that Bitcoin would break $100,000 by the end of this year, a prediction that has now come true. Additionally, he predicted during an interview with Skybridge Capital founder Anthony Scaramucci at the end of November that this iconic digital asset would reach a peak of $250,000 by the end of 2025.
Lee's optimistic outlook on Bitcoin is based on four factors: the Federal Reserve's rate cuts, demand for Bitcoin spot ETFs, the impact of the halving event on supply, and the incoming Trump administration potentially designating Bitcoin as a strategic reserve asset.
Could Bitcoin hit $250K next year? @fundstrat's Tom Lee explains why in this must-watch interview with Anthony @Scaramucci. From crypto’s next leap to AI and the S&P reaching 15,000, discover bold predictions, market insights, and strategies for 2025 and beyond! pic.twitter.com/sFenOJEv5t
— Wealthion (@wealthion) November 29, 2024
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