Tom Lee predicts Bitcoin to reach $150,000 by year end
Fundstrat’s Tom Lee predicts market bottom could arrive this week.
Tom Lee, Head of Research at Fundstrat, told CNBC that the broader market may be nearing a bottom as early as this week.
Lee’s outlook comes amid significant economic uncertainty during President Trump’s first 100 days in office, reports CoinDesk.
He points to multiple factors fueling volatility, including the Department of Government Expenditure (DOGE) program, which is enforcing austerity measures that reduce public spending, and tariff policies that are creating further uncertainty for businesses and investors.
Market Dynamics and Bitcoin Reversal
Lee noted that Bitcoin (BTC) has experienced another price reversal, filling in Friday’s CME gap and currently trading at about $83,000—a decline of over 10% this year. He explained that this downturn is not the result of negative news but rather a natural cyclical market force.
Lee projects that, in the short term, Bitcoin could drop to around $62,000 before recovering. He remains optimistic, however, predicting that Bitcoin could finish the year above $150,000 if market conditions improve and the Federal Reserve acts to stabilize the economy.
Upcoming Job Data and Fed Policy Adjustments
A key event on Lee’s radar is Friday’s job data release, which he believes could dictate short-term market direction. Should the employment figures fall below expectations, Lee anticipates an initial wave of panic. Paradoxically, he suggests that a negative report might prompt the Federal Reserve to accelerate its interest rate cuts.
Currently, the futures market is pricing in roughly 75 basis points of cuts for this year, which could bring the federal funds rate to a range of 3.50% to 3.75% by year-end. Notably, the Fed has already implemented 100 basis points of cuts in the current cycle, adding to the cautious sentiment.
Looking Ahead
As policymakers grapple with tightening fiscal conditions and businesses navigate uncertain trade environments, Lee’s analysis suggests that the current market dip could represent a temporary pause rather than the end of the bull market. Investors and analysts will be watching Friday’s job data closely, as any significant shift could accelerate the expected rate cuts and ultimately pave the way for a robust recovery in both traditional and digital asset markets.
Recently we wrote, that crypto veteran Arthur Hayes, co-founder of BitMEX and 100x, maintains that the current Bitcoin bull market remains intact despite recent volatility, warning that Bitcoin could fall as low as $70,000 before surging to $250,000.
