Fundstrat’s Tom Lee says that an interest rate-cutting cycle from the Federal Reserve could correlate to a bull market expansion for Bitcoin (BTC).
In a new interview with Skyridge Capital CEO Anthony Scaramucci on the Wealthion podcast, Lee says that BTC could be looking at blue skies ahead, given that the large distribution of coins from the German government has passed without collapsing the market.
If Bitcoin can hold steady amid the ongoing Mt. Gox distribution, Lee says that a Fed rate cut could be a massive catalyst to trigger the next big leg up for BTC.
“It’s a hyper-volatile asset so it’s affected by supply perceptions, not just demand perceptions, and on the supply side, you’re exactly right.
Mt. Gox is finally being resolved. That’s really been one of the biggest expected overhangs since the original hack and so when the distribution, which is in July, when that’s behind us and markets see that there hasn’t been a cataclysm, I think that’s going to be a case for why Bitcoin does really well in the second half [of the year].
The Germany distribution, that’s really strange timing but that’s already behind us now, and I’d say the only thing that I think would hurt crypto is that it’s still correlated and viewed as a risk-on asset so if the Fed is somehow unexpectedly tight, it would act as a headwind.
But if the Fed starts cutting, I think you’re going to see a move in Bitcoin that would correlate to what small caps would be doing as well, there’s a lot of things correlated to a Fed starting a cutting cycle…
I think that $100,000 or even higher is possible. Bitcoin makes moves in very short periods of time. We have published previously, for many years showing that Bitcoin makes most of its gains in ten trading days if you look at percentage gains. So those ten days could all be in the second half of this year.”
At time of writing, Bitcoin is trading for $$69,136.
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The post Fundstrat’s Tom Lee Says Fed Rate Cuts Could Trigger Bitcoin Move to $100,000 or Higher After Mt. Gox Resolution appeared first on The Daily Hodl.
