Fundstrat’s co-founder, Tom Lee, has made a bold prediction that’s got the crypto community buzzing. In a recent interview with CNBC, Lee expressed his belief that the approval of a spot Bitcoin ETF in the U.S. could potentially catapult the leading cryptocurrency’s price to a staggering $150,000 or even higher.
Lee’s optimism stems from his analysis of the potential demand and supply dynamics that could arise post-approval. “If the spot Bitcoin [ETF] gets approved, I think the demand will be greater than the daily supply of bitcoin,” he explained. This imbalance, according to Lee, could set the clearing price of Bitcoin at over $150,000, with the possibility of it even touching $180,000.
However, Lee’s prediction comes with a caveat. The surge in Bitcoin’s price is contingent upon the spot Bitcoin ETF receiving approval in the United States. This is a significant distinction, especially considering that a Bitcoin ETF was listed overseas just the previous day. The U.S. Securities and Exchange Commission (SEC) has historically been cautious, either denying or postponing applications for the listing of the first spot Bitcoin ETF. This has been the trend for several years, with many companies attempting to get their ETFs listed, only to face regulatory hurdles.
Despite the SEC’s past decisions, the crypto community remains hopeful. However, some experts believe that the regulatory body, in its current form, might not change its stance anytime soon. John Reed Stark, the former chief of the SEC Office of Internet Enforcement, opined that the Biden administration is unlikely to approve a spot Bitcoin ETF.
But even if the spot Bitcoin ETF doesn’t see the light of day, Lee believes that Bitcoin still has significant upside potential. One of the primary reasons for his optimism is the upcoming planned daily supply reduction of Bitcoin, commonly referred to as “The Halving.” This event, which is set to take place on April 26, 2024, has historically been a catalyst for price surges in the cryptocurrency.
While the future of the spot Bitcoin ETF in the U.S. remains uncertain, predictions like Lee’s highlight the immense potential and belief in the cryptocurrency’s future. Only time will tell if Bitcoin will reach the lofty heights predicted by Lee, but one thing is certain – the crypto community will be watching closely.
