Tom Lee, a prominent Wall Street bull and Managing Partner at Fundstrat Global Advisors, expressed on July 1st that with the commencement of repayments by the bankrupt exchange Mt. Gox in July, concerns about Bitcoin’s largest sell-off will dissipate. He is optimistic that Bitcoin will experience a significant rebound in the second half of the year, with the possibility of its price reaching $150,000 this year.
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Wall Street Bull Tom Lee: Bitcoin to Reach $150,000 by Year End, Could Rise Tenfold in Next Five Years!
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Bitcoin “to Reach $180,000” in 2024, Wall Street Bull Tom Lee: Spot ETF Will Ignite BTC Halving Rocket
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Nicknamed the “Bitcoin Bull,” Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, had previously predicted in January of this year that Bitcoin’s price could surge to $100,000 or $150,000 within the next 12 months following the approval of a Bitcoin spot ETF. He even suggested that within the next five years, the price might soar to $500,000.
However, after reaching a historic high of around $73,000 in March, Bitcoin’s momentum has faltered. For much of the past few months, it has hovered between $60,000 and $70,000, briefly dropping below $60,000. Nonetheless, during an interview with CNBC on the 1st, Tom Lee remained steadfast in his prediction of Bitcoin reaching $150,000.
Will Mt. Gox’s Sell-Off Concerns Be Alleviated to Fuel a Rally?
Addressing Bitcoin’s recent weak performance, Tom Lee analyzed:
Mt. Gox, once the world’s largest Bitcoin exchange, suffered a devastating hack in 2014 that resulted in the theft of 850,000 Bitcoins. After a decade-long bankruptcy litigation, the compensation process has finally begun. The trustee of Mt. Gox announced last month that repayments to creditors, including 142,000 BTC and 143,000 BCH, will commence from July, with completion expected by October this year.
This development has caused considerable market unease, with investors concerned that creditors may soon sell some of the Bitcoins, given the lengthy wait of over ten years. Concurrently, concerns were raised when the US and German governments transferred a substantial amount of previously seized Bitcoins to exchanges by the end of June.
However, Alex Thorn, Director of Galaxy Research, previously analyzed that the sell-off from Mt. Gox will be less than expected. He noted that nearly 75% of creditors opted for early compensation (with a 10% discount), meaning only about 95,000 Bitcoins will be used for early payments. The remaining Bitcoins will take longer to distribute, and individual creditors are likely to hold onto their Bitcoins more firmly.
Further Reading:
Don’t Panic! Galaxy: Three Reasons Why Mt. Gox’s BTC Sell-Off Will Be Less Than Expected, Bitcoin Back Above $60,000
Bitcoin Sees Most of Its Annual Gains in Just 10 Days Each Year
Nevertheless, CNBC pointed out that investors remain optimistic about Bitcoin’s trajectory. Last summer, Bitcoin fluctuated within a 20% range for several months before ultimately starting a significant uptrend. Historically, Bitcoin tends to approach new highs about 18 months after each halving event, and Bitcoin’s fourth halving occurred in April.
It is worth noting that Tom Lee highlighted that most of Bitcoin’s annual gains typically occur within just 10 days each year:
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