Fundstrat's Tom Lee Foresees Bitcoin Surging to $200,000: Impact of Spot BTC ETF Underestimated, Says Analyst

Tom Lee of Fundstrat forecasts a potential surge in Bitcoin's value to around $200,000 within five years. He believes the impact of a US-authorized Bitcoin ETF is significantly underestimated, which, if approved, could boost Bitcoin's market. If an ETF isn't approved, he expects Bitcoin to rely on organic network effects.

In a recent interview with CNBC, Tom Lee of Fundstrat anticipates a possible Bitcoin surge exceeding 500% from its current value within the next five years.

When questioned about the timeline for his price projection, Lee, the managing partner at Fundstrat, suggested that Bitcoin could potentially rise to "around $200,000 within five years". At the moment, Bitcoin is trading at $29,982.

Explaining his bullish outlook, Lee asserted,

"Bitcoin has significant utility. In the US, there is a common misconception that the financial system serves everyone effectively. However, it primarily benefits those with wealth."

Lee goes on to argue that the potential impact of authorizing a spot Bitcoin exchange-traded fund (ETF) in the US is being overlooked.

He stated, "The impact of a Bitcoin ETF is often underestimated...

Currently, the multiplier effect [if a Bitcoin ETF is authorized] is about four-to-one, implying that a dollar inflow translates to a four-dollar increase in Bitcoin's market cap. Therefore, a demand of $100 billion or $200 billion could lead to an $800 billion increase..."

In a scenario where spot Bitcoin ETF applications are declined in the US, Lee opines,

"If an ETF is not approved, then we will have to rely on organic network effects. However, I believe the approval of an ETF is highly probable, and it would serve as an important and underestimated catalyst."


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Jul 19, 2023

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