Tom Lee, Who Accurately Predicted the 2023 Rally, Shares Bitcoin Predictions for the New Year
Tom Lee, Managing Partner and Head of Research at Fundstrat and FS Insight, recently shared his market outlook on a TV show.
Lee, known for his bullish stance, correctly predicted that the S&P 500 would rise 20% to 4,750 as inflation decreased as we entered 2023.
During the program, Lee discussed his views on Bitcoin, which has been in a significant uptrend recently. Emphasizing the security of Bitcoin, Lee said, “This is the safest way to move money, unquestionably.” He also highlighted that since the inception of Bitcoin, which is now in its 15th year, there has not been a single fraudulent entry in the nearly 100 trillion transactions on the Bitcoin blockchain.
In contrast, Lee pointed out that 6% of all banking activity was suspicious during the same period. Lee identified two significant positive winds for Bitcoin in the coming year. The first of these is the change in monetary policy as central banks become increasingly dovish. “There has never been a bearish cycle in cryptocurrencies when the Fed was relaxed,” Lee said.
The second positive tailwind is the potential approval of a Bitcoin spot ETF, which could significantly increase customer access to Bitcoin, according to Lee. Despite being a $2 trillion asset class, Bitcoin is not currently accessible through 401k plans. But approval of a spot ETF could change that and open up Bitcoin to U.S. households, which collectively hold around $170 trillion in investable capital, according to the analyst.
According to Lee, even if people invested just 1% of their 401k plans into Bitcoin, this would overwhelm the Bitcoin supply. Based on these factors, Lee concluded, “I think Bitcoin could have a very strong year next year.”
401k is known as a retirement savings plan offered by many employers in the United States.
*This is not investment advice.
