Cryptocurrencies

Bitcoin drops, but Tom Lee expects price to hit $150,000 in 2024


Bitcoin is in trouble and continues to fall, but Fundstrat’s Tom Lee is not letting that get him down. He still expects a Bitcoin price of $150,000 by the end of 2024.

Bitcoin price of $150,000

Tom Lee expects a Bitcoin price of 150,000 dollars, because he predicts that the Federal Reserve (American central bank) will soon start lowering interest rates. He also thinks that the demand for Bitcoin ETFs will play a major role in the price explosions of Bitcoin.

Banner Bitcoin 2 (telephone)

However, this month also sees the payout of Mt. Gox. Mt. Gox was the largest Bitcoin exchange in the world in 2014, but the exchange platform went bankrupt just like Sam Bankman-Fried’s FTX.

There are currently around 140,000 Bitcoins collected to be distributed to creditors. Distributions will begin this month, which is why the market seems a bit fearful at the moment.

The uncertainty surrounding the Federal Reserve’s interest rate policy also plays a role.

Uncertainty over Federal Reserve interest rate policy

The US central bank was expected to cut interest rates 6 times at the beginning of the year. However, almost out of nowhere, inflation in the US started to rise again in Q1 2024 and with that, those interest rate cuts disappeared like snow in the sun.

It’s now July and we’re still waiting for the first interest rate cuts.

Now the good news is that inflation seems to have come down a bit in recent weeks and the US economy is weakening slightly. That is necessary to bring inflation to the desired 2.0%, but we are not there yet.

In that respect, next week promises to be a crucial one for the Bitcoin price. Next week, there will be a new consumer price index (CPI) on the agenda in the United States.

If it is lower than expected again, then the first rate cuts by the Federal Reserve in September 2024 seem certain. Until then, we will unfortunately have to be patient and wait to see how the situation develops.

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