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Crypto currency expert Tom Lee, in his statements to CNBC, expects the flagship of the markets, Bitcoin (BTC), to triple in price this year. There are three main reasons why Tom Lee expects Bitcoin to continue to rise this year. Here are the details!
Three Reasons for the Rise in BTC
Tom Lee’s prediction follows Robert Kiyosaki’s forecast, which mentioned Bitcoin reaching $100,000. The three reasons for Bitcoin to hit $150,000 per coin are outlined by the Fundstrat expert, who lists three fundamental factors likely to increase the price of the flagship crypto currency this year. According to the expert, the first of these has already happened, Bitcoin ETFs. These exchange-traded products allow investors to invest in the price of Bitcoin without actually having to purchase BTC.
On January 11, the Securities and Exchange Commission, led by Gary Gensler, finally gave the green light to establish BTC ETFs on January 11. This was applicable for eleven ETFs at the same time. The list of issuers included some of the largest fund management companies in the US: BlackRock, Ark Invest, Fidelity, VanEck.
BTC Trading Volume
VanEck’s report indicates that the latest daily trading volume for the Bitcoin ETF was $399,923,600. Tom Lee mentioned that Bitcoin ETFs will start buying BTC from the market, which will increase the demand for the token. Tom Lee said the second reason is the upcoming Bitcoin halving, which will create a supply shock. Halving events for crypto currencies occur every four years.
This event will cut the amount of Bitcoin produced per block in half. The current amount of 6.25 Bitcoin will drop to 3.125 BTC after the halving in April. The third significant factor likely to impact Bitcoin’s price is the expected reduction in interest rates by the Federal Reserve. Tom Lee explained that low interest rates are beneficial for risky assets and that Bitcoin is considered a risky asset by Wall Street and banks.
