Tom Lee, the renowned market analyst who accurately predicted the 2023 rally, is now sharing his Bitcoin predictions for the new year. Lee, the Managing Partner and Head of Research at Fundstrat and FS Insight, recently appeared on a TV show to discuss his outlook on the market.
Known for his bullish stance, Lee correctly forecasted that the S&P 500 would experience a 20% rise to reach 4,750 as inflation decreased at the start of 2023. During the program, he focused on Bitcoin and its recent significant uptrend. Lee emphasized the security of Bitcoin, stating that it is the safest way to move money without a doubt.
One remarkable fact that Lee highlighted is that since its inception 15 years ago, there hasn’t been a single fraudulent entry in the nearly 100 trillion transactions on the Bitcoin blockchain. In contrast, he pointed out that 6% of all banking activity during the same period was suspicious.
Lee identified two positive factors that could significantly impact Bitcoin in the coming year. Firstly, he mentioned the change in monetary policy as central banks adopt a more dovish stance, stating that there has never been a bearish cycle in cryptocurrencies when the Federal Reserve was relaxed.
The second positive factor Lee highlighted is the potential approval of a Bitcoin spot ETF. If approved, this could provide greater customer access to Bitcoin and potentially open it up to U.S. households. Currently, Bitcoin is not accessible through 401k plans, which are retirement savings plans offered by many U.S. employers. However, if a spot ETF is approved, Lee suggests that even a 1% investment from 401k plans could overwhelm the Bitcoin supply.
Taking these factors into account, Lee believes that Bitcoin could have a very strong year ahead. It should be noted that this text does not provide investment advice.