Tom Lee, the managing partner of Fundstrat Global Advisors, has made a bold prediction about Bitcoin (BTC). In a recent CNBC interview, Lee stated that Bitcoin could potentially increase by more than 500% from its current level within five years.
Bitcoin to hit $200k
When asked about the timeline of his prediction, Lee suggested that Bitcoin could surge to approximately $200,000 within the next five years.
As of writing this, Bitcoin is currently trading at $29,982. Lee believes that Bitcoin is a useful tool, and that the financial system in the US only works well for those who already have money.
According to the managing partner of Fundstrat, the potential impact of a Bitcoin exchange-traded fund (ETF) being authorized in the US is not fully recognized.
The partner believes that the significance of a Bitcoin ETF is underestimated, as its approval could result in a four-to-one multiplier effect on the change in the market cap of Bitcoin. This means that for every dollar of inflow, the market cap of Bitcoin would increase by four dollars.
Therefore, if demand for Bitcoin reaches $100 billion or $200 billion, the market cap could increase by $800 billion.
On the other hand, if the ETF applications are rejected, the growth of Bitcoin will rely on organic network effects.
However, the managing partner believes that an ETF approval is likely and could be a crucial catalyst for the Bitcoin market.
Bitcoin new price prediction
According to a popular cryptocurrency analyst, Bitcoin (BTC) may reach a value ranging from $40,000 to $50,000 in the upcoming months.
In a recent strategy session, quantitative analyst PlanB shared with his 58,200 YouTube followers that he predicts the cryptocurrency to experience a significant price increase as it approaches its next halving event.
The halving is an event when BTC block rewards are cut in half, which happens about every four years. Check out our previous article in order to learn more details.
