Tom Lee, the managing partner of Fundstrat Global Advisors and a renowned Bitcoin bull, stated that people underestimate the impact of a spot Bitcoin exchange-traded fund (ETF) on the cryptocurrency and made a bold six-figure prediction for the largest crypto asset. Lee expects BTC to reach $200,000 in a timeframe of around five years.
Lee’s $200,000 Prediction for Bitcoin
Speaking to CNBC, Tom Lee said that Bitcoin could experience a powerful surge of over 500% from current levels within five years. When asked to provide a specific date for his price prediction, the managing partner of Fundstrat Global Advisors, mentioned that he expects Bitcoin to reach around $200,000 within five years.
Lee listed several reasons for his bullish forecast, stating, “Bitcoin is a highly useful system. The financial system in the US is believed to work well for everyone, but it really only works well for those who have money.”
The managing partner of Fundstrat Global Advisors emphasized that people underestimate the effects of a spot Bitcoin ETF approval in the US. He stated, “In my opinion, people underestimate the importance of a Bitcoin ETF. If a spot Bitcoin ETF is allowed, its multiplier will be roughly four. This means that a one-dollar investment will have a four-dollar impact on Bitcoin’s price change. With a demand of 100 billion or 200 billion dollars, the impact will be 800 billion dollars due to the multiplier effect.”
“I Expect the US to Approve a Spot Bitcoin ETF”
Furthermore, Lee briefly commented on the potential consequences if the US regulatory agency, the Securities and Exchange Commission (SEC), rejects the spot Bitcoin ETF applications under review.
Lee stated, “If a spot Bitcoin ETF is not approved, then one would have to continue relying on organic network activity. However, I expect the US to approve a spot Bitcoin ETF, and I believe it will be a significant and underestimated catalyst for Bitcoin’s rise.”
