Hassan Maishera
TL;DR
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BTC has been hovering above the $51k level since the start of the year.
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Tom Lee predicts that Bitcoin could hit $150k this year.
BTC Stabilizes Above $51k
Bitcoin, the world’s leading digital asset by market cap, has been hovering around the $51k level since the start of the week. At press time, Bitcoin is trading at $51,563, down by less than 1% in the last 24 hours.
There has been no major macroeconomic condition behind Bitcoin’s consolidating move since the start of the week. However, market experts still believe BTC could surge higher in the coming weeks and months.
FundStrat head of research Tom Lee maintains his bullish stance on Bitcoin and predicts that the leading cryptocurrency could touch $150,000 before the end of the year. In an interview with CNBC, Lee said,
"You have demand improving with the new ETFs, you have supply shrinking with the halving, and if monetary policy eases which we expect, that's supportive for risk assets."
Despite Bitcoin stagnating around the $51k level in recent days, Lee said he doesn’t think that a drawdown would start soon. However, other analysts believe that BTC could undergo a minor correction before it rallies higher.
Joel Kruger, market strategist at LMAX Group, predicts a decline in the short term due to shifting central bank policies and fallout from global macro weakness. He suggested that any price decline should serve as an opportunity for investors to take strategic positions in the market.
Analytics firm Swissblock also believes that while the long-term outlook is bullish, BTC might experience a slight retrace in the short term. The firm said,
"While the prevailing sentiment suggests a potential continuation of the upward trajectory, the current scenario may necessitate a period of consolidation or even a retracement to the $47.5k support level. This adjustment would serve to alleviate excess volatility and reinforce market stability before potential further upside moves."
The total cryptocurrency market cap has declined by 1% in the last 24 hours and now stands at $1.96 trillion.
