Market expert Thomas Lee says Bitcoin price could still reach six figures by year end

Thomas Lee, chief investment officer at Fundstrat Capital and a contributing writer for CNBC, claims that Bitcoin could still hit six figures by the end of the year.

Crypto markets saw huge gains from Donald Trump’s November 5 election victory. For context, cryptocurrency’s eldest son, Bitcoin, surged to a new all-time high of $76,943 on Thursday.

Amid the optimism, Fundstrat’s chief investment officer Thomas Lee insisted that there is still more room for global markets to rise, including cryptocurrencies. During an appearance on CNBC’s Squawk Box on Friday, Lee said Bitcoin and small-cap stocks are set to rise sharply in the short term.

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Trump's victory is good for Bitcoin: Lee

The CNBC special contributor said global markets face turbulence ahead of the election due to uncertainty. However, Trump’s inauguration as the 47th President of the United States will spur a rally and further drive the market upward for crypto assets, including Bitcoin.

Lee said the expected rally would be huge, citing regulatory changes under Trump and Bitcoin’s growing importance in global markets. Notably, Trump’s pro-crypto stance was evident from the beginning of his campaign, where he pledged to make the United States the global capital of Bitcoin.

As such, Lee expects his victory to have a huge impact on the price of Bitcoin. Furthermore, Fundstrat’s chief investment officer argued that Trump’s market experience from his first term boosted investor confidence, leading to the market’s upward trend since he won the election.

Since Bitcoin is part of Trump’s deal, Lee foresees the largest cryptocurrency by market cap rising to six figures by the end of the year. He also revisited his previous $150,000 Bitcoin prediction, noting that the premier asset has plenty of room to rise.

Experts Assert Bitcoin Will Curb Growing US Debt

Notably, one of Trump’s campaign promises was to reduce the growing U.S. deficit, which already exceeds $3.5 trillion. When asked whether the targeted debt reductions could be achieved through tax cuts and spending cuts, Lee noted that it would be difficult to accomplish the reductions that way.

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However, the CNBC contributing writer noted that Bitcoin will play a key role in the United States’ deficit reduction efforts. Lee said Bitcoin is a potential treasury asset whose long-term record of appreciation could help offset the U.S. debt.

Interestingly, Trump has hinted at the same approach in the past. The US President-elect earlier said Bitcoin could help solve the country’s growing debt, claiming he would give creditors “a little Bitcoin check.”

Meanwhile, discussions on establishing a U.S. Bitcoin Treasury reserve have gathered pace. Senator Cynthia Lummis noted after Trump's victory that the country would adopt the asset as a hedge against economic uncertainty. A bill promoted by the pro-crypto Republican senator would see the U.S. acquire 1 million Bitcoins over five years.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not necessarily reflect the opinions of The Crypto Basic. Readers should conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.