Bitcoin Price Speculation: Tom Lee Eyes $150K if Spot ETF Gets Green Light

Spot Bitcoin ETF: The Catalyst for Bitcoin’s Meteoric Rise?

Tom Lee, a prominent figure at CNBC as their Head of Research, recently shared enlightening insights regarding the profound implications of the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin ETF trading. During a CNBC Market Alert interview, Lee underscored several Bitcoin metrics that could undergo substantial transformations with this potential regulatory nod.

Bitcoin’s Demand-Supply Dynamics

A notable forecast from Lee surrounds the potential surge in Bitcoin’s price. By his estimate, given the SEC’s approval of a spot Bitcoin ETF, Bitcoin might witness a price elevation ranging between $150k to $180k. But why such a bullish sentiment?

Lee elucidated that the approval would inevitably cause a surge in demand, which could outpace Bitcoin’s daily supply. This discrepancy between demand and supply could consequently escalate Bitcoin’s price, even pushing it beyond the $150k mark. For those unfamiliar, a spot Bitcoin ETF essentially mirrors Bitcoin’s value, enabling investors to gauge and invest based on the cryptocurrency’s price without necessitating direct acquisition.

The European Footsteps

While the U.S. is engrossed in its contemplation regarding the spot Bitcoin ETF, Europe has already taken strides in this domain. August 15 marked the day Europe unveiled its premier spot Bitcoin ETF, finding its place on the Euronext Amsterdam stock exchange. With Europe leading the charge, speculation is rife about whether this will expedite the U.S. SEC’s decision-making process.

Furthermore, prominent financial entities in the U.S., including giants like BlackRock, are fervently advocating for this approval. Investment powerhouses, namely Wisdom Tree and Invesco, have been at the forefront, with the former even experiencing rejection on two distinct occasions. Yet, they remain undeterred in their mission.

Pondering the ‘What Ifs’

The discourse also ventured into speculative territory, contemplating Bitcoin’s fate in the absence of an SEC-approved spot ETF. Lee hypothesizes that even if the SEC withholds its approval, supply reductions could still instigate a price surge for Bitcoin, albeit not reaching the illustrious six-figure mark. Offering another perspective, former SEC Chairman Jay Clayton opined that negating a Bitcoin spot ETF might pose its own set of challenges for the regulatory body.