Will Bitcoin triple again this year? You must know three reasons
As Chinese people around the world celebrated the Lunar New Year, the price of Bitcoin (Bitcoin) broke through the US$50,000 mark and its market value exceeded US$1 trillion, setting a new high in three years. It sent a big red envelope to all investors, but Bitcoin’s rise It’s not the end yet, prices may even triple again this year!
Tom Lee, the founder of Fundstrat Global Advisors, a Wall Street investment research company and a well-known Wall Street analyst known as the "Wall Street Bull," predicted on the old "CNBC" program "Squawk Box" on Wednesday: "Bitcoin prices are likely to rise this year. Climbing a new peak of $150,000.”
In addition to Tom Lee, Robert Kiyosaki, the author of the best-selling financial book "Rich Dad Poor Dad", also posted on High confidence in prospects.
Tom Lee has predicted Bitcoin prices in the media many times in the past. This time he called out the figure of $150,000. There are three main reasons behind it.
️Extended reading: Bitcoin price exceeded US$50,000, market value exceeded US$1 trillion! Why does the joy of the Lunar New Year make digital gold soar?
Reason 1: Bitcoin spot ET passed
After a long wait of 11 years, the U.S. Securities and Exchange Commission (SEC) approved the applications of 11 institutions for "Bitcoin Spot ETF" on January 10 this year, allowing the general public to buy stocks without actually holding Bitcoin. By using this method, you can participate in the growth of "digital gold". Since its launch, transaction volume has frequently hit new highs, and it has been strongly loved by investors.
Bloomberg ETF analyst Eric Balchunas said on X on the 22nd that the trading volume of nine Bitcoin spot ETFs (excluding futures fund Hashdex and trust fund GBTC) reached nearly 2 billion US dollars on the evening of the 20th, the highest level since January 11 All-time high since trading.
Tom Lee believes that after the launch of the Bitcoin spot ETF, it will begin to purchase Bitcoin from the market, which will further increase the demand for Bitcoin and allow the price to surge upwards.
️Extended reading: Bitcoin spot ETF passed! After 11 years of waiting for fortune to finally turn around, can Taiwan buy it? How much is the handling fee? One answer
Factor Two: Bitcoin Halving Will Debut
"Bitcoin Halving" is like the Olympics, a major event that occurs every four years.
Bitcoin is generated through "mining", and those responsible for verifying transactions on the Bitcoin blockchain network, commonly known as "miners," can receive Bitcoin as a reward.
The meaning of Bitcoin halving is that approximately every four years, the number of Bitcoin rewards received by miners will be "halved." Three halvings have occurred so far.
It is expected that in April this year, the fourth halving will be ushered in, and the block reward will be halved again to 3.125 Bitcoins.
According to the law of supply and demand, the supply of Bitcoin will decrease, but the market demand will only increase. When demand exceeds supply, the price of Bitcoin is bound to increase again.
️Extended reading: [Illustration] Understand "Bitcoin Halving" at once! Will mining rewards decrease and miners disappear?
Factor 3: The Federal Reserve (Fed) cuts interest rates
The last factor driving the rise of Bitcoin is that the US Federal Reserve (Fed) will begin to lower interest rates. Tom Lee said that low interest rates are beneficial to risky assets like Bitcoin.
The reason is that lower interest rates will lower overall investment costs, and people will be more willing to invest money in risky assets with higher variables.
Tom Lee: The currency price will be stable for a while and will not fall so quickly
Tom Lee is very confident in the development of Bitcoin. In an interview with "CNBC", he said that Bitcoin is a sound currency and a good value storage tool. He believes that the currency price should be stable for a while, and it will not be like this. It's going down soon.
In addition, Tom Lee also praised the security of Bitcoin. Since its birth in 2009, there has never been a record of fraud on the Bitcoin blockchain. “I don’t think any bank dares to say such a thing.”
Joel Kruger, market strategist at LMAX Group, a financial service provider, suggested that considering changes in central bank policies and the overall global economy that has not yet emerged from weakness, the cryptocurrency market may still experience violent fluctuations in the short term, reminding investors to remain cautious recently.
Analyst company Swissblock believes that although Bitcoin will continue to rise in the long term, it will go through a period of adjustment before the price soars, and the currency price may fall back to around $47,000. Such an adjustment is not a bad thing, but can Strengthen market stability.
References: Coindesk, U.today, Cryptonews
Review editor: Gao Jingyuan
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