Bitcoin to $150K in 12–18 Months: Tom Lee

In a recent CNBC interview, Tom Lee, the founder and head of research at Fundstrat Global Advisors, reinforced his bullish stance on Bitcoin (BTC), stating that the digital asset could potentially surge by around 119% within the next 12 to 18 months.

Bitcoin to Reach $150K Soon

Lee highlighted that Bitcoin serves as a hedge against unsound money. He emphasized that Bitcoin possesses its own unit value, measured against dollars, akin to the way people gauge gold against dollars.

“I think that sometime in the next 12–18 months, Bitcoin can be over $150,000. But that’s because the backdrop for BTC is so much more favorable today,” Lee states.

He attributed his bullish outlook to several converging factors that he believes will propel Bitcoin to new heights.

Spot ETFs Success

One crucial factor in Lee’s forecast is the increasing visibility of demand for a spot exchange-traded fund (ETF). He highlights that the market is witnessing a notable surge in interest and investment, particularly as evidenced by substantial inflows into the spot Bitcoin ETF.

As per the latest data, the total assets in the ETFs, excluding GBTC, are now over $28 billion. Notably, this is now larger than GBTC’s assets under management (AUM) for the first time.

According to BitMEX Research, March 8 recorded a positive net flow of $223 million. These massive figures signal growing institutional interest in BTC.

Bitcoin Halving

Lee went on to emphasize the imminent supply-dynamic improvement with the approaching Bitcoin halving, which is less than a month away. The halving event, occurring around every four years, reduces the reward miners receive for validating transactions on the blockchain.

This mechanism is expected to contribute to a reduction in the new supply of Bitcoin, potentially creating a supply-demand imbalance that favors higher prices. Lee states:

“I think as long as there is strong spot demand and there aren’t eager sellers, you do have a market that is out of balance, that there is too much demand for BTC, not enough supply created through the block reward.”

A Clear Road

From a regulatory standpoint, Lee suggests that Bitcoin has weathered the peak of regulatory scrutiny in the past year. With several regulatory challenges already addressed, he anticipates a more favorable landscape for BTC, stating:

“I think from a regulatory perspective we had so many hammers dropped in the last 12 months, really 18 months, that unless it’s going to be worse over the next two years, Bitcoin’s already faced sort of the peak of regulatory backlash.”