Bitcoin recently crossed the $50,000 mark, regaining the $1 trillion market capitalization for the first time since Dec. 2021. The big question now is, when will BTC hit a new all-time high?
Tom Lee, a prominent figure in the crypto community, has identified three major factors he believes will drive Bitcoin to the coveted $150,000 price tag in 2024.
BTC Rocket Fuel: Three Catalysts To Propel Bitcoin Higher
Tom Lee, renowned for his optimistic outlook on Bitcoin, has confidently posited that BTC is primed to hit six figures this year. In an interview with CNBC’s Squawk Box, Lee highlighted three catalysts he thinks will propel BTC to $150,000.
The first one is already here: spot BTC exchange-traded funds (ETFs). These investment vehicles allow investors to gain exposure to Bitcoin without the need to purchase or store the crypto asset directly. After a decade of denials, the U.S. Securities and Exchange Commission (SEC) finally approved nearly a dozen spot BTC ETFs in a historic move.
According to Lee, spot ETFs will gobble up Bitcoins from the market, bringing a steady inflow of non-speculative investment for the first time in Bitcoin’s history. Demand for these new products will light a fire under the industry’s flagship cryptocurrency’s bulls.
The second catalyst is the impending Bitcoin halving in April. The quadrennial event effectively halves the new supply of BTC entering the market each day. Theoretically, fewer Bitcoins in circulation means that the value of the cryptocurrency will soar with demand amid a supply shock.
The final important factor likely to propel Bitcoin prices higher is the benchmark interest rates. There is a growing consensus that U.S. Federal Reserve officials will start cutting rates in 2024. Lower interest rates are a boon to risk assets like Bitcoin, Lee elaborated, contributing to a potential rally.
Lee’s prognostication comes days after “Rich Dad Poor Dad” author Robert Kiyosaki made a similar super bullish forecast on the price of Bitcoin. As reported by ZyCrypto, Kiyosaki said he anticipates Bitcoin to hit $100,000 by June 2024 — which is just two months after the miner rewards halving.