Thomas Lee, Co-Founder, Managing Partner and the Head of Research at independent research boutique Fundstrat Global Advisors, has recently shared an optimistic outlook on the price of Bitcoin as $150 trillion in US household wealth could boost the market.
During a recent interview with CNBC, Tom Lee highlighted the significant impact that introducing spot Bitcoin exchange-traded funds (ETFs) in the United States could have on the cryptocurrency’s value, as he believes that these ETFs will greatly simplify and secure the process of US households investing in Bitcoin, leading to a substantial increase in its market cap.
Per Lee even a small allocation of US household wealth to Bitcoin could dramatically increase the value of the flagship cryptocurrency, estimating that there’s $150 trillion of household net worth in the US and that a 1% allocation would lead to $1.5 trillion of inflows, which already surpass Bitcoin’s current market capitalization.
The analyst noted that there’s “tremendous potential” that that it’s a “really important diversification for a lot of folks that have exposure to US dollar assets in equities or bonds.” He added Bitcoin is “really a good headge against a lot of monetary risks.”
Lee remains bullish on Bitcoin’s future, predicting that its price could soar to between $100,000 and $150,000 within a year and potentially reach around $500,000 in the next five years.
As CryptoGlobe reported, As CryptoGlobe reported, if history repeats itself the spot Bitcoin ETFs could help the price of Bitcoin skyrocket and boost the total market capitalization of the cryptocurrency space in the process.
CCData’s latest Institutional Primer on the impact of a spot Bitcoin ETF compares it to the launch of the first gold ETF in the United States, which occurred back in November 2004 and per the report “provides insights into a potential Bitcoin ETF’s impact.”
The report details that gold’s price steadily rose from around $375 in May to $442 at the time of the ETF launch, reaching a high of $454 over substantial inflows. The precious metal’s price then retraced to $411 by early February 2005, the report adds, suggesting that we may observe a similar pattern for Bitcoin’s price as its price surged with the anticipation and saw a brief breakout, and could now see a healthy correction.
Nevertheless, by August 2011 the price of gold hit a record high as the SPDR Gold Shares (GLD) ETF became the world’s largest ETF, even surpassing the SPDR S&P 500 Trust ETF in value. As BTC competes with gold to become “the alternative asset class as the store of value,” the report concludes that “one can only wonder about the long-term growth potential for the Bitcoin asset class.”
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