Fundstrat’s Tom Lee is out with another bullish call on Bitcoin BTC/USD with the world’s largest cryptocurrency trading around the $51,000 level.
“I think it, you know, could be as high as $150,000 this year,” Lee said Wednesday on CNBC’s “Squawk Box.”
What To Know: Bitcoin crossed the $50,000 level earlier this month for the first time in two years as crypto markets have benefitted from increased institutional adoption on the back of recently approved spot ETFs and excitement surrounding April’s halving event.
Lee’s bullish call is backed by the supply-demand dynamics of Bitcoin. There’s improving demand for Bitcoin following ETF approval and supply is expected to fall when mining rewards get cut in half next month, he said.
Furthermore, Lee believes monetary policy is going to ease this year, which will help support risk assets. Despite recent hawkishness from the Federal Reserve regarding the central bank’s cautious approach toward potential rate cuts this year, Bitcoin has held up well, so it’s not likely to reverse course as the Fed eases, he explained.
Related Link: Why These 2 Wall Street Economists ‘Not Too Concerned’ By January’s Hot Inflation, Maintain Prediction For May Rate Cut
Lee further suggested that Bitcoin could climb as high as $500,000 per coin over the next five years.
“It is sound money and I think it’s proving to be useful,” Lee said.
Bitcoin has been an efficient store of value, performed well as a risk asset and has proven to be secure, he said, adding that there hasn’t been a single fraudulent entry on the blockchain since its inception.
CNBC’s Andrew Ross Sorkin pushed back against Lee’s bullish call and asked him to explain why Bitcoin is used for nefarious activity so often.
Lee told CNBC that pirates were the first group of people to show interest in gold, which helped show that it could be a good store of value. He also argued that the U.S. dollar is used for much more illicit activity than Bitcoin is used for. What we should be paying attention to is the fact that Bitcoin is widely trusted, he added.
“Criminals don’t trust anybody, but they trust Bitcoin,” Lee said.
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$BTC Price Action: At publication time, Bitcoin was up about 0.4% over a 24-hour period at $51,233, according to Benzinga Pro.
Photo: phive from Shutterstock.
