Tom Lee, the co-founder of Fundstrat, has expressed a positive forecast for the price of the primary cryptocurrency. He mentioned in an interview with CNBC that if the US Securities and Exchange Commission approves a Bitcoin ETF, the value of the actual Bitcoin could surge to over $150,000 per unit.
“If the spot Bitcoin [ETF] gets approved, I think the demand will be greater than the daily supply of bitcoin,” he explained. “So the clearing price — this is done by our crypto digital strategist — is over $150,000. It could even be like $180,000.”
Lee’s analysis revolves around the condition of spot Bitcoin ETF approval in the United States. Currently, a spot Bitcoin ETF has not been approved by the US SEC (Securities and Exchange Commission). Even though an overseas Bitcoin ETF was recently listed, Lee’s focus is on US approval.
Historically, the US SEC has consistently either denied or postponed applications for a spot Bitcoin ETF over the course of several years. There is skepticism regarding the possibility of the SEC changing its stance under the current administration, headed by President Biden.
A former official from the SEC, John Reed Stark, believes that the approval of a spot Bitcoin ETF is unlikely during the Biden administration.
However, regardless of the ETF approval, Lee suggests that Bitcoin still holds potential for price growth due to an upcoming event known as “The Halving.” This event refers to a planned reduction in the daily supply of new Bitcoins. The next Bitcoin halving event is scheduled to take place on April 26, 2024.
This event has historically had an impact on the supply and demand dynamics of Bitcoin, potentially leading to upward price movements.