- Tom Lee predicts that Bitcoin could surge to around $200,000 within the next five years.
- He believes the potential impact of a spot Bitcoin ETF in the U.S. is being overlooked.
Bitcoin Could Skyrocket to $200,000, Foresees Tom Lee of Fundstrat
Tom Lee, the managing partner of Fundstrat Global Advisors, has shared an optimistic six-figure forecast for Bitcoin (BTC). According to Lee, Bitcoin’s value could explode by more than 500% from its current standing within the next five years.
In a recent CNBC interview, Lee stated that Bitcoin could reach
“something around $200,000 within five years.”
At the time of writing, Bitcoin is trading at $29,982.
The Underestimated Impact of a Spot Bitcoin ETF
Lee’s bullish perspective stems from his belief in Bitcoin’s utility and the potential impact of a spot Bitcoin exchange-traded fund (ETF) in the U.S. — a prospect he feels is currently being underestimated.
“Bitcoin is very useful. I think in the U.S., there’s a tendency to think the financial system works well for everybody. But for people who have money, it does work well,”
Lee elaborated on the implications of a Bitcoin ETF and the possible multiplier effect on the cryptocurrency’s market cap.
“I think the Bitcoin ETF, I think people underestimate how important that will be… And the multiplier right now [if a Bitcoin ETF is authorized] is roughly four-to-one, meaning a dollar of inflows is four dollars to the change in the price of Bitcoin’s market cap. So you know if you get a $100 billion or $200 billion of demand that’s $800 billion…”
However, he also acknowledged the potential setback if the spot Bitcoin ETF applications are rejected in the U.S. In such a scenario, Lee pointed out that
“[If you don’t get an ETF] then you’re going to rely on sort of organic network effects. But I do think an ETF is very likely and that would also be a very important and underestimated catalyst.”