Tom Lee, Who Correctly Predicted the 2023 Rally, Shared His Bitcoin Predictions for the New Year
Tom Lee, Managing Partner and Head of Research at Fundstrat and FS Insight, shared his market outlook on a recent TV show.
Lee, who is known for his bullish sentiment, correctly predicted that the S&P 500 would rise 20% to 4,750 as inflation subsides heading into 2023.
During the program, Lee expressed his views on Bitcoin, which has been in a significant upward trend recently. Emphasizing the security of Bitcoin, Lee said, “This is undoubtedly the safest way to move money.” 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 approximately 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 headwinds for Bitcoin in the year ahead. The first of these is the change in monetary policy, with central banks becoming increasingly dovish. “There has never been a bearish trend in cryptocurrencies when the Fed eased,” Lee said.
The second positive tailwind, according to Lee, is the potential approval of a Bitcoin spot ETF that could significantly increase customer access to Bitcoin. Despite being a $2 trillion asset class, Bitcoin is currently inaccessible through 401k plans. But approval of the spot ETF could change that, opening up Bitcoin to U.S. households that 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 exceed the supply of Bitcoin. 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.
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