Bitcoin
Fundstrat’s Tom Lee Says Fed Rate Cuts Could Trigger Bitcoin’s Move to $100,000 or More After Mt. Gox Resolution
Fundstrat’s Tom Lee says a Federal Reserve interest rate cut cycle could correlate with an expanding bull market for Bitcoin (BTC).
In a new interview with Skyridge Capital CEO Anthony Scaramucci on the Wealthion podcast, Lee says BTC could be looking at blue skies in the future given that the German government’s massive coin distribution went off without causing a market crash.
If Bitcoin can hold steady amid the ongoing Mt. Gox distribution, Lee says a Fed rate cut could be a major catalyst to trigger BTC’s next big rally.
“It’s a hyper-volatile asset, so it’s affected by supply perceptions, not just demand perceptions, and on the supply side, you’re absolutely right.
Mt. Gox is finally getting resolved. This has really been one of the biggest overhangs that we’ve been expecting since the original hack and so when the distribution, which is in July, when this is behind us and the markets see that there hasn’t been a cataclysm, I think that’s going to be a case for Bitcoin to do very well in the second half of the year. [of the year].
The German distribution, that was a really weird moment, but it’s behind us, and I would say the only thing I think would hurt crypto is that it’s still correlated and seen as a risk asset, so if the Fed were to unexpectedly tighten, that would act as a headwind.
But if the Fed starts cutting, I think we’ll see a move in Bitcoin that would correlate with what small caps are doing as well. There are a lot of things that correlate with the start of a Fed cutting cycle…
I think $100,000 or even more is possible. Bitcoin makes moves in very short periods of time. We have published previously for many years showing that Bitcoin makes most of its gains in ten trading days if you look at the percentage gains. So those ten days could all be in the second half of this year.”
At the time of writing, Bitcoin was trading at $69,136.
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