Hedge fund veteran Tom Lee is maintaining bullish conviction on both the stock market and Bitcoin (BTC) following the much-anticipated halving on April 20.
In a new interview on CNBC, Lee says the halving, which cut Bitcoin miners’ rewards in half late last week, along with the rise of the Runes protocol, which has helped generate massive amounts of fees for the flagship blockchain, is going to contribute to upward pressure on price.
[adinserter block="1"]The Fundstrat co-founder, who has been vocally bullish on Bitcoin for many years now, is forecasting a Bitcoin cycle top of $150,000, potentially before the year’s end.
“It’s a reminder of the sound money of Bitcoin because it’s pre-programmed every 210,000 blocks to cut the block reward. We know it means you’re cutting the supply but demand has been strong, and Bitcoin network usage has really been strong because of things like Runes protocol, so you kind of made the demand side stronger and the supply side smaller so I think it’s upward pressure on price…
I think Bitcoin definitely makes new all-time highs this year, so we think something like $150,000 is probable this year. And then, longer term, I don’t think there’s anything wrong with those targets people have like $500,000 for Bitcoin or much higher.”
Lee is also bullish on the stock market, which has been correcting from local highs over the last several weeks.
According to the investor, the equities are reaching an oversold level, partially backed up by the DeMark Sequential indicator, which pinpoints trend reversals based on the closing prices of the previous nine and 14 intervals.
“I think there has been a lot of damage to the markets, but there are ways to look at why things could be turning. Mark Newton, our head of technical strategies says the cycle turn date is April 20th… If you look at things like the DeMark count, we’re at almost a seven so we’re only one or two days from a potential bottom or turning point…
They say bull markets rise in an escalator and fall in an elevator, so it’s what you’d expect in a rising trend is sharp corrections and it shakes people out and I think there are a lot of top callers but to me, I think this is a good opportunity.”
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