Amidst market volatility and concerns about inflation, Fundstrat Capital CIO and Head of Research, Tom Lee, remains bullish on Bitcoin, predicting it will be one of the best-performing assets of the year. In a recent CNBC interview, Lee discussed his market outlook, emphasizing the potential for a market turning point this week, driven by positive earnings and easing inflation data.
Lee acknowledged recent market corrections, linking them to investor nervousness surrounding rising yields. However, he downplayed the significance of the Federal Reserve’s interest rate decisions, stating his market analysis isn’t based on rate cut predictions. He believes the market has benefited from previous cuts and should focus on preventing a resurgence of inflation.
While expressing some uncertainty about this week’s inflation data due to distortions caused by natural disasters like hurricanes and the Los Angeles fires, Lee suggested that underlying inflation may be weaker than reported. He pointed to Fed Governor Christopher Waller’s comments about the impact of imputed prices on inflation figures. Lee believes that once these distortions are accounted for, the market will react positively.
Addressing Bitcoin’s recent price drop, Lee characterized the 15% decline as a normal correction for a volatile asset. He noted that Bitcoin is still in the early stages of its halving cycle, a period historically associated with price appreciation. While acknowledging the possibility of further short-term declines to around $70,000, Lee maintained his long-term bullish outlook, suggesting Bitcoin could reach $200,000 or even $250,000 this year. He advised investors to take a long-term perspective on Bitcoin, asserting that buying at current prices around $90,000 remains a good entry point. He believes that while some investors might try to time the market and wait for a potential dip to $70,000, the potential upside makes current levels attractive for long-term holders.
