One Cryptocurrency to Buy Before It Peaks at Least 66%, According to Tom Lee

In recent years, few market analysts have made as accurate predictions as Tom Lee from Fundstrat. While many experts remained pessimistic after a tough 2022, Lee adopted a positive outlook and has benefited from a resilient bull market that has consistently overcome bearish sentiments.

Bitcoin (BTC), the largest cryptocurrency, has seen remarkable increases, especially following Donald Trump's presidential win in early November. However, recent market sell-offs have led Bitcoin and many other cryptocurrencies to lose some of their gains. Nevertheless, Lee holds a bullish outlook, suggesting that Bitcoin could rise by at least 66% by the end of the year.

The Path Ahead for Bitcoin

Recent weeks have seen Bitcoin experiencing high volatility owing to declining consumer confidence and the impact of Trump's trade policies. Initially, Fundstrat's technical strategist had adopted a bearish stance on Bitcoin after its previous strong performance, projecting a target of $62,000 by the end of March.

Lee is optimistic about Bitcoin as a hedge against inflation due to its limited supply. However, he also views it as a risk asset and believes it may face challenges in the coming months, particularly due to tariff news and the potential escalation of trade conflicts. For example, the Trump administration has enacted tariffs ranging from 20% to 25% on various countries, which could impact market dynamics.

Despite his bearish outlook in the short term, Lee is confident that any downturns for Bitcoin will be temporary. In a recent interview with CNBC, he mentioned his expectation for Bitcoin to exceed $150,000 this year, indicating significant upside potential from current levels within the next ten months.

Lee did not elaborate extensively on the specific factors he believes will drive Bitcoin's upcoming performance, but he emphasized that growing institutional acceptance — particularly potential involvement from major firms like Citadel — could significantly influence the market.

According to reports, Citadel is exploring opportunities to act as a market maker in the crypto space, which could enhance liquidity in large retail exchanges like Coinbase and Binance.

Conclusion

At the start of the year, Lee expressed a long-term ambition for Bitcoin to reach $250,000 by 2025, underlining his belief in the improving regulatory environment and the possibility of a U.S. strategic cryptocurrency reserve.

While it's essential to recognize the near-term uncertainties and potential market reactions, Lee's insights reflect growing institutional interest and adoption of cryptocurrency, particularly Bitcoin, which may increase its appeal as a long-term hold. Investors should prepare for market volatility and approach this asset class with a long-term perspective instead of treating it as a short-term speculative investment.

Bram Berkowitz has positions in Bitcoin and Ethereum.

Bitcoin, Investment, Market