Well-known analyst Tom Lee, the Head of Research at Fundstrat, is doubling down on his prediction that Bitcoin’s (BTC) price will reach $150,000 by year’s end.
Lee reiterated his bullish outlook on a day when Bitcoin and other cryptocurrencies were sliding lower, with the price of BTC around $85,000 at midday. Bitcoin is now down nearly 25% from its January all-time high of just over $109,000, which occurred on the day of U.S. President Donald Trump’s inauguration.
Despite the current slump, Lee said he still expects BTC to be trading at $150,000 or higher by year’s end during an interview on CNBC. Lee noted that Bitcoin’s current struggles are not due to negative news related to crypto but rather to cyclical market forces. He expects those forces to reverse later in the year.
BTC Rebound
Lee added that Bitcoin’s price could fall as low as $62,000 in the near-term but still see’s BTC’s price finishing the year above $150,000. The current selloff in crypto also comes amid a sharp pullback in stocks, with the technology-laden Nasdaq 100 flirting with a 10% correction.
Risk assets are pulling back over concerns related to President Trump’s trade tariffs and signs the U.S. economy is cooling. However, Lee says that a downturn in the American economy could prompt the U.S. Federal Reserve to accelerate interest rate cuts, which could quickly reinvigorate stocks and crypto.
Futures markets are pricing in 75-basis points of interest rate cuts this year, which would lower the benchmark Federal Funds Rate to a range of 3.50% to 3.75%.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 11.19% in the last 12 weeks.
