U.Today - On Tom Lee, co-founder of Fundstrat, charted the potential path ahead for Bitcoin, spotlighting pivotal factors that could steer its price.
At the heart of Lee's forecast is the U.S. Securities and Exchange Commission (SEC) possibly giving the green light to a spot Bitcoin exchange-traded fund (ETF).
Such a move, in Lee's view, could be the wind in Bitcoin's sails, pushing its price north of $150,000, even nearing the $180,000 mark.
However, he emphasized that this optimistic trajectory hinges on the SEC's nod. Bitcoin ETFs have found ground internationally, but a U.S. endorsement would be a cornerstone for the domestic crypto industry.
Lee highlighted the interplay between cryptocurrencies and the broader monetary climate. He posited that stabilization in inflation rates could pave the way for more relaxed financial conditions.
This, in turn, might prompt central banks to ease their grip, setting a conducive stage for cryptocurrencies, with Bitcoin at the forefront.
Zooming out to the wider financial landscape, Lee commented on the ebb and flow of recent inflation trends. He noted that the current core inflation, pegged at 0.16%, is anchored by robust housing figures. Yet, he foresees these currents mellowing, projecting inflation to recede below 2% by mid-next year.
Bitcoin's rally has so far stalled at the $30,000 level after the largest cryptocurrency due to BlackRock (NYSE:BLK)'s entry into the ETF race. The flagship coin peaked at more than $69,000 in late November 2021 before enduring a major crash.