The chief executive of market insights platform Fundstrat is reiterating that Bitcoin (BTC) will still post massive gains this year despite its choppy price action in the last six weeks.
In a new CNBC interview, Tom Lee says Bitcoin’s bull market cycle is far from over.
According to Lee, Bitcoin and other asset classes have not yet agreed that the Fed is shifting to a looser monetary policy.
“Bitcoin is still early in an upcycle. So the idea that it can get to $150,000 this year is still within our base case… I think it does help that the Fed is reiterating that its view on inflation and its being relatively dovish is more dovish than where the market is. So I think that’s the process of why markets are recovering.”
At time of writing, Bitcoin is trading for $62,508, down 1.31% in the past day.
Looking at the stock market, Lee sees more publicly listed companies printing solid earnings growth this quarter. He also highlights that market conditions look bullish with trillions of dollars still waiting on the sidelines.
“To us, earnings growth is accelerating. Q1 earnings are up 7%, but three groups are down 20%: energy, healthcare, and materials. Energy and healthcare flip to positive next quarter so earnings growth hits 11%.
We know there’s a lot of pent-up demand. Capital spending is picking up, and the ISMs are turning up and there’s $6 trillion in cash on the sidelines and people have been cautious for more than two years now.
I think the risk-reward is still pretty good.”
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