Bitcoin To Explode by More Than 450%

Tom Lee, the managing partner of Fundstrat Global Advisors, believes that Bitcoin (BTC) could reach a six-figure price if a spot Bitcoin exchange-traded fund (ETF) is approved in the US by the Securities and Exchange Commission (SEC).

In a recent interview with CNBC, Lee stated that the demand for Bitcoin would skyrocket if such an ETF were approved, possibly exceeding the daily supply of Bitcoin.

According to Fundstrat’s crypto digital strategist, Sean Farrell, the clearing price could be over $150,000, or even as high as $180,000 if a spot Bitcoin ETF is approved outside the US.

At the time of writing, Bitcoin is trading at $26,432, and would need to increase by between 467% and 580% to reach Fundstrat’s forecast.

If a spot BTC ETF fails to gain approval in the US, Bitcoin’s price may still increase due to the upcoming halving next year. With a decrease in supply, the clearing price will likely rise. However, it is unlikely to reach six figures.

The future of crypto assets is also dependent on the Federal Reserve’s monetary policy. If inflation cools and financial conditions ease, it could lead to a bullish market for alternative assets like crypto.

An expert in cryptocurrency, Benjamin Cowen, believes that Bitcoin may continue to decline, despite having already dropped by over 15% since its peak in August of this year.

Cowen explains that this is a pattern that occurs every four years and is currently being influenced by the S&P 500 stock index, which typically experiences a correction in August or September of pre-election years.

As the S&P 500 has already declined by over 5% since the start of August, Cowen predicts that Bitcoin could experience a further decline of up to 39%, with a potential drop to 83%, which has happened in previous “secondary scares.” In 2019, for example, once the secondary scare began and Bitcoin fell below the 20-week moving average, it dropped by 61%.