Bitcoin has recently entered an important phase in its market cycle, according to Tom Lee, co-founder of Fundstrat. In the interview of Nov. 29 with Wealthion, Lee indicated that Bitcoin could reach $ 250,000 within the next 12 months. He explained that the upcoming halving event, which will reduce the supply of Bitcoin, combined with the rise of institutions, is creating a stage for the price to rise. At the time of writing, Bitcoin is priced at $97,343.
Lee believes that the price of Bitcoin will follow its historical trend, with a significant increase in value following the halving cycle. He said that the current situation makes it “possible” that Bitcoin will hit $250,000 next year. One of the reasons behind this is the change in the political situation in the United States, with the incoming government showing support for Bitcoin. Lee said that if the US starts collecting Bitcoin as part of its national security, it could lend more value to the cryptocurrency and increase its value.
He also talked about the strategy of companies like MicroStrategy, which integrated Bitcoin into its payments with great success. Lee believes that if other companies take a similar approach, it will drive demand for Bitcoin. This, combined with massive support from the US government, could push the price of Bitcoin even higher.
Lee’s prediction is not limited to Bitcoin. He noted that other cryptocurrencies such as Ethereum, Solana and Avalanche could also see significant price increases in the coming year. He sees the growth of Bitcoin as part of a larger trend of increasing institutional acceptance, which will drive the entire market forward.
Additionally, Lee sees Bitcoin as an effective hedge against inflation, similar to gold and real estate. He believes that as inflation continues to rise around the world, Bitcoin’s stable supply and unique nature will make it an attractive store of value. This is especially true as traditional financial markets face volatility.
The famous trader Dave The Wave also weighed the possibility of Bitcoin, indicating that the price of $150,000 is possible if Bitcoin follows its performance from October 2023 to March 2024, during which the cryptocurrency gained 186%.
Tom Lee’s prediction for Bitcoin is optimistic, with a target price of $250,000 in the next year. Factors such as the half cycle, the US government’s pro-Bitcoin situation, and increasing institutional acceptance are expected to drive the value of the cryptocurrency. Lee also believes that Bitcoin is becoming increasingly effective against gold as a store of value.