By Michael Scott
Fundstrat lead researcher Tom Lee is confident Bitcoin will surpass the $100,000 price level before December 31.
Lee issued the bold forecast while appearing in the CNBC interview, reiterating the optimistic outlook for the world’s largest cryptocurrency. In his insights, the Fundstrat Global Advisors exec hints that Bitcoin will comfortably cross above $100K by December 31 this year.
The Lee prediction drew the attention of crypto advocates, among them MicroStrategy executive chair Michael Saylor. Interestingly, Lee’s appearance in the CNBC Squawk Box to discuss market stumbles emerged as Bitcoin staged a rebound to reclaim $90,500 from a brief tumble on Friday. The executive forecast implied that Bitcoin should surge by 10.50% to realize the six-figure target price of $100,000.
A look into Lee’s insights reveals that the executive had set the end-of-year target for BTC in February at $150,000. The researcher noted that several factors will propel the Bitcoin upsurge, including interest rate cuts, halving, and Bitcoin exchange-traded funds (ETFs). Recently, he lowered the projections by 33.33% to $100K.
Bitcoin to Match Post-Halving Expectations
Lee observed that the BTC’s current market conditions are in congruence with how experts expected the premier asset to perform after the April halving.
A look into the Bitcoin performance shows substantial growth following the halving event that lowers the miners’ rewards per block completed. Doing so is critical to keep the BTC inflation rate in check, thus ensuring a price increase. Lee observes the recent surge above the $90,000 threshold occurred seven months after the halving event.
Bullish Outlook Under Trump Administration
Lee anticipates Bitcoin will realize impressive performance over the next 12 months. He highlights that Bitcoin’s potential to rally to $100,000 is aided by Donald Trump’s pro-crypto stance.
In his recent analysis, he considers Bitcoin an integral focus for the Trump-led administration. Notably, Lee attributes the economic consideration of the Trump administration to establishing BTC reserve assets. The move will resolve the inherent challenges in the existing financial system.
Lee entertains the argument by investors who expect the crypto assets, including Bitcoin, to excel under the Trump administration, given the promises issued during the campaign trail to the segment.
The executive indicated that Trump, ensuring the US establishes the national Bitcoin stockpile, would grant BTC reserve assets. Such aligns with the draft proposals for the Bitcoin Act bill, tabled by Senator Cynthia Lummis.
The Bitcoin Act bill proposes the US should acquire at least 5% of the BTC supply in five years. The bill requires the US government to hold the BTC for at least two decades. Per Lee’s account, the proposal is bolstering confidence in BTC, with several analysts issuing favorable predictions for the asset.
Lee’s forecast for a $100K price appears to garner steam among analysts, as illustrated by Bernstein, which calls a $200,000 price achievable by 2025. Like Lee, they attribute the surge to the deriving thrust from the pro-crypto promises issued during the Grand Old Party (GOP) campaign. Moreover, Bernstein analysts add weight to the bullish outlook, citing that institutional demand could drive BTC to new heights.
Institutional Support Driving Bitcoin’s Outlook
Pro-crypto executives consider growing institutional support as key to sustaining the momentum of Bitcoin’s upward trajectory. MicroStrategy’s chair, Michael Saylor, echoes this view, noting that Bitcoin will surpass $100K by December 31.
Saylor attributes the optimistic projection to reduced regulatory uncertainties and expanding institutional adoption. The former MicroStrategy’s chief hails the critical role that institutional players such as BlackRock play in bolstering the credibility of the BTC market. Besides, they foster positive sentiment across the entire financial sector.
Besides political developments, Saylor highlights the evolving regulatory context to diminish the near-term risks of Bitcoin corrections. Instead, the near-term potential for Bitcoin is a stronger position as a viable investment.
Saylor revealed during a CNBC interview that Bitcoin could surpass the $100K propelled by credibility on Wall Street and more adoption. The executive ruled out significant price drops during the transformative period, further aided by the positive momentum derived from pro-business and pro-crypto policies.