Bitcoin Price Could Reach Six Digits by Year-End, Says Analyst
The current momentum in Bitcoin and cryptocurrency markets may continue to rise, driven significantly by the election of Republican Donald Trump. His supportive stance on crypto has contributed to Bitcoin's price surpassing $76k, exceeding March's record.
Market analysts remain optimistic following the US elections. Thomas Lee, CNBC contributor and CIO of Fundstrat Capital, predicts Bitcoin could reach six digits by year-end, citing a favorable market and political environment for digital assets.
Trump’s Election Boosts Crypto Industry
During a discussion on CNBC’s Squawk Box, Lee expressed confidence in a short-term rally for Bitcoin and altcoins due to Trump's election. He noted the challenges in addressing the national deficit solely through tax and spending changes, suggesting that Bitcoin could serve as a potential Treasury reserve asset to help mitigate liabilities.
“It’s going to be very difficult to fix the deficit with just changes in taxes and spending,” says @fundstrat’s Tom Lee. He says bitcoin is “potentially a Treasury reserve asset. If Bitcoin rises in price, it actually helps offset the liabilities, which is the deficit.” pic.twitter.com/tVrnE37dhS
— Squawk Box (@SquawkCNBC) November 8, 2024
Lee noted that the pre-election environment was filled with uncertainties. However, with Trump’s victory and his pro-crypto policies, the outlook for the crypto industry appears more positive. He emphasized that regulatory changes could further support Bitcoin's growth, referencing his initial target of $150k for BTC as attainable.
Bitcoin, Digital Assets Can Help Offset US Debt
Trump aims to address the growing budget deficit, currently over $35 trillion. Lee argues that relying on Bitcoin could provide a solution, as its market value has increased over time. Trump has also suggested he could manage the budget issues using Bitcoin.
Bitcoin Act Gaining Momentum After The US Elections
Prior to Lee's remarks, discussions on Bitcoin's role in the financial system were underway. Senator Cynthia Lummis introduced the Bitcoin Act, aiming to recognize Bitcoin as an economic asset. Following Trump's election, Lummis believes there will be stronger support for this legislation, which includes provisions for holding up to 1 million BTC over five years as a hedge against inflation.
Featured image from UpFlip, chart from TradingView