Bitcoin (BTC) Strength Now Serving As Precursor for Rallies in This Asset, Says Fundstrat’s Tom Lee

Fundstrat Chief Funding Officer Tom Lee says Bitcoin’s (BTC) latest energy foreshadows future rallies in one other asset.

In a brand new interview on CNBC, Lee says that BTC’s sturdy rallies over the previous quarter are an indication that buyers have excessive threat urge for food and that future rallies within the S&P 500 may be anticipated.

“It actually tells us that buyers are pro-risk. I believe it additionally simply exhibits how a lot capital has been sitting idle in recent times, both parked in money within the cash market or ready to see if the economic system survives. So I believe Bitcoin’s rise for me, breaking out of a holding sample, is a harbinger of what the S&P will do for the remainder of the 12 months.”

Lee lately mentioned that the dwindling provide of obtainable BTC will possible be felt as soon as Bitcoin breaks the psychological worth level of $100,000.

Trying on the Federal Reserve’s rate-cutting cycle, Lee says that, opposite to common consensus, fewer fee cuts subsequent 12 months may truly be higher for dangerous belongings as a result of it extends the Fed’s easy easing cycle.

“I believe there’s a conceptual change that the market must get used to. For example earlier this 12 months when the Fed began making cuts, folks thought 5 cuts are good for shares in 2025, so if the quantity is reduce, it is bearish.

I believe as we transfer into 2025, the market will begin to assume that the bottom potential reduce subsequent 12 months is greatest as a result of it extends the easing cycle. So I believe we now have to flip the script, however that may take a while.”

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