Bitcoin (BTC) Poised for ‘Sharp Rebound’ in the Remainder of 2024, Predicts Fundstrat’s Tom Lee – Reveals Target
The head of research at Fundstrat Global Advisors, Tom Lee, is optimistic about Bitcoin’s performance for the remainder of 2024. In an interview with CNBC, Lee expressed his belief that Bitcoin could potentially reach $150,000 by the end of the year, representing a significant increase of over 137% from its current value.
Lee highlighted a key factor contributing to his bullish outlook on Bitcoin, noting that the long-awaited repayment of approximately 142,000 BTC, valued at nearly $9 billion, to creditors of the now-defunct Mt. Gox exchange is expected to commence from July to October. This event, which many had feared would negatively impact Bitcoin’s price, is now seen by Lee as a catalyst for a potential strong rebound in the cryptocurrency.
He emphasized the significance of the Mt. Gox repayments, stating, “Bitcoin is probably suffering from the Mt. Gox starting distributions in July. That was a huge overhang for many years. But if I was investing in crypto knowing that one of the biggest overhangs is going to disappear in July, I think it’s a reason to actually expect a pretty sharp rebound in the second half.”
Lee also pointed out an interesting trend in Bitcoin’s price movements, noting that the cryptocurrency tends to achieve most of its gains in just ten days each year. He highlighted the importance of these short periods of significant growth and cautioned that without these days, Bitcoin could potentially see negative returns.
As of the time of writing, Bitcoin is trading at $63,124, reflecting a nearly 3% increase in the past 24 hours. In addition to his positive outlook on Bitcoin, Lee also shared his predictions for the stock market, suggesting that stock prices are likely to end the year higher than their current levels.
Lee expects earnings for the S&P 500 in 2025 to surpass initial projections, potentially reaching $275-$285 per share. He also anticipates that Price-to-Earnings (P/E) multiples could rise next year due to dovish policies from the Federal Reserve and softening employment figures, leading to a favorable outlook for stocks in the second half of the year.
In conclusion, Tom Lee’s optimistic stance on Bitcoin’s potential for a “sharp rebound” in the latter half of 2024, coupled with positive expectations for stock market performance, reflects his confidence in the financial markets’ growth prospects moving forward.
