The price of Bitcoin (BTC) has reached a new all-time high, or ATH, and Wall Street analysts believe it won’t be the last ATH we’ll see in the coming months. In this way, the Fundstrat team has raised their prediction for the price of the leading crypto from $ 100,000 to $ 168,000, with one condition. We tell you!
How will BTC close in December?
According to a Bloomberg report, Tom Lee, co-founder of Fundstrat, sees the possible price of Bitcoin to hit $ 168,000 before the end of the year.
It is worth remembering that Lee is known in the crypto market for maintaining a bullish stance at all times on cryptocurrencies in general, but specifically on Bitcoin.
In fact, as we mentioned previously, Lee had previously projected that the leading crypto would hit $ 100,000 this year. Now, he projects that it could reach $ 168,000. Why did you change your mind?
Well, for the same reason why the crypto market at the moment is on the rise: the high expectations about what a Bitcoin ETF can mean for the crypto market and for BTC itself.
A Bitcoin ETF is just the boost we needed
According to Lee, it is precisely the approvals of Bitcoin ETFs that will push its price up to $ 100,000. Mainly because it is betting that the launch of this new investment vehicle will increase the adoption of the leading crypto.
Tom Lee is not the only one who believes that ETFs will allow more people to allocate part of their investment portfolios to cryptocurrencies.
According to ABC News, Ben Johnson, Global Research Director for ETH at Morningstar, noted that ‘the only thing that can be said with certainty is that … the advent of the era of the Bitcoin ETF opens up the opportunity for Wall Street to make money. with BTC in a way that I haven’t been able to do before. ‘ However, there are also those who believe that ETFs do not contribute anything new.
You’ll make it?
Thus, Lee wrote in the report that the new Bitcoin ETF “will allow many more people to invest in cryptocurrencies.” In fact, he believes that the demand for Bitcoin will exceed the QQQ entries.
It is worth clarifying that QQQ refers to the Invesco ETF. This one was released in 1999 and tracks the 100 largest Nasdaq tech companies. This ETF that offered diversification among the top tech companies at a time when investors already had the ability to invest in tech stocks.
And, during its first year, the Invesco ETF saw inflows of $ 36 billion. So Fundstrat predicts that the ProShares Bitcoin ETF will be able to outperform it by generating $ 50 billion in its first year.
If this prediction comes true, it would translate into greater demand for a scarce asset such as Bitcoin and, of course, that would trigger the price. Thus, the Fundstrat model yielded an equilibrium price between demand and supply of USD 168,000
Also, according to Yahoo Finance, Tom Lee noted that “there are some views that the increase in the price of Bitcoin is already internalized.” In this way, he explained that “to some extent, this is probably true … But in our opinion, the price of Bitcoin will continue to rise … after the actual approval of the ETF.”