- Fundstrat’s Tom Lee forecasted that Bitcoin will jump to $200K per BTC before the year ends.
- The catalysts: the Fed’s incoming interest rate cut and market seasonality during the fourth quarter.
Thomas Jong Lee, also known as Tom Lee and the co-founder of Fundstrat Global Advisors, recently made a bold prediction about where Bitcoin (BTC) could be heading after surging to $113K again on Tuesday. In an interview at CNBC’s Squawk Box, he told the host, Andrew Ross Sorkin, that it could “easily” reach $200,000 before 2025 ends.
The target amazed Sorkin, as it represented roughly double the price of the premier crypto asset at the time of the interview. The figures are also impressively up by 60% from Bitcoin’s all-time high (ATH) of $124,457.12 per coin last month.
The Catalysts for Bitcoin’s Major Price Action
Lee told viewers that September 17 would be an important date for Bitcoin. It could very well be the fuse that could cause its price to explode beyond its prevailing record-high. That date happens to be the next meeting of the Federal Open Market Committee (FOMC) in the US, where the Federal Reserve will determine if it will make changes to its monetary policy.
Fundstrat’s Head of Research based his prediction on the expectation that the Fed will eventually pull the trigger on cutting down the interest rates following the meeting. To date, the rates are pegged at 4.25%-4.5%, which has been the case in the last five consecutive FOMC sessions.
Analysts and even Fed Governor Christopher Waller believe the rates are already due for calibration. He claimed that the figures exceed the neutral level by 1.0%-1.5%. Hence, he hinted that it may be due for adjustment starting this month. Additionally, he projected that it would be followed by a series of more rate cuts in the next three to six months.
Moreover, President Donald Trump has been nagging Fed Chair Jerome Powell about it since the last election cycle, saying the matter has been long overdue while referring to the central bank head as “Too Late Powell” for his supposed failure to cut rates on time.
Besides Bitcoin’s sensitivity to monetary policy, Lee identified another likely catalyst that will bring BTC closer to his forecast. According to him, the market’s seasonality will reinforce its momentum.
Lee pointed out that the premier digital asset’s price tends to make significant gains during the fourth quarter. So, if timed right, the anticipated interest rate cut could help push its value relatively higher.
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