Tom Lee of Fundstrat Global Advisors continues to back a strong year-end rally for Bitcoin, predicting it could still reach $150,000 to $200,000 by the end of 2025.
Tom Lee of Fundstrat Global Advisors continues to back a strong year-end rally for Bitcoin, predicting it could still reach $150,000 to $200,000 by the end of 2025.
His bullish outlook is based on three key points, with the first one being help from the Fed. Lee believes that if the Federal Reserve starts cutting interest rates, it will be good for risky investments like Bitcoin.
Then, he notes that crypto markets have often performed well in the last quarter of the year, especially when the overall economy is also doing well.
In general, the renowned strategist argues that Bitcoin’s limited supply, together with more big money getting involved, creates a solid foundation for higher prices.
His prediction was largely influenced by how Bitcoin’s price behaved after the massive wave of liquidations that hit the crypto market in early October. During that event, approximately $20 billion in leveraged positions were liquidated.
Lee pointed out that the market has been stabilizing since that sudden crash. Major cryptocurrencies like Bitcoin and Ethereum have been trading in a narrower range, and the total value of active derivative contracts has now recovered to $25 billion.
At the same time, the Head of Research at Fundstrat predicted that Ethereum could hit $7,000 by the end of 2025. He pointed out that the use of stablecoins on the Ethereum network has skyrocketed to new records, and the income generated by the apps built on it is also at an all-time high.
Bitcoin has been experiencing constant drops lately, with the price currently sitting at approximately $101,345, which is about a 2.4% decline in the last 24 hours and over 5% compared to the last 7 days.
Additionally, the crypto market has seen notable outflows from Bitcoin spot ETFs, which signals institutional caution even amid bullish narratives. For instance, a few days ago, US-listed spot ETFs for Bitcoin and Ethereum experienced a collective net withdrawal of around $800 million.
Still, Tom Lee’s bullish prediction supports the idea that Bitcoin’s next major surge could happen when the flow of money in the global economy changes. Interestingly, Strategy founder Michael Saylor shares a similar prediction, where he recently said that Bitcoin will trade at $150,000 by the end of this year.