Can Bitcoin Price Really Hit $200K in 2025? Tom Lee Thinks So

Tom Lee, head of analysis at Fundstrat World Advisors and Chief Funding Officer at Fundstrat Capital, stated on Monday that Bitcoin may rise to $ 200,000 earlier than the top of 2025. Speak on CNBC’s squawk boxLee argued that the approaching coverage choices of the Federal Reserve shall be essential for the trail of cryptocurrencies.

“Bitcoin and cryptocurrencies equivalent to Ethereum are very delicate to financial coverage,” stated Lee. “If the Fed goes to the rates of interest, this could possibly be the scene for a really robust fourth quarter.”

The Fed and Market Indicators

Lee’s remarks then got here new baneng information on a mitigating labor market. Bond markets at the moment are anticipating three rates of interest this 12 months, greater than the present projection of the Fed of two.

In keeping with Lee, the delay in accepting is tougher for the Fed to disregard. “As quickly because the labor market weakens, it’s tough to reverse that momentum,” he stated, including that sooner tariff reductions can assist housing, stimulate the belief of the corporate and stimulate broader financial development.

Why Crypto may benefit

Lee defined that Bitcoin tends to carry out nicely within the fourth quarter, particularly in periods through which the Fed shifts to enjoyable. He identified examples from the previous in 1998 and 2024, when comparable cycles of velocity reductions coincided with robust rallies in each shares and cryptocurrencies.

“Equits are doing nicely in these environments, and crypto, which frequently strikes in accordance with shares, can profit much more,” Lee defined. “That is why I imagine that Bitcoin can attain $ 200,000 earlier than the top of the 12 months.”

Ethereum, he added, may additionally see earnings, particularly if small CAP shares proceed their current energy. “Throughout on a regular basis highlights, traders are nonetheless bearish. That tells me that there’s room for markets, together with Crypto, to go greater if the Fed delivers on cuts,” Lee stated.