Tom Lee, the managing partner and head of research at investment research firm Fundstrat Global Advisors, said on Thursday that Bitcoin's breakthrough of the $100,000 mark could signal a bullish stock market outlook.
In an interview with CNBC, Tom Lee said: "I think the rise of Bitcoin, to me, is a breakout of a consolidation pattern that could be a harbinger of how the S&P 500 might perform for the rest of the year."
Lee pointed out that the rise of Bitcoin reflects a preference for risk in the market, "I think it also shows how much capital has been sitting idle, either in cash in the money markets or just on the sidelines waiting to see if the economy can hold up."
Focus on the "Santa Claus Rally"
Tom Lee said that investors will have a lot of macroeconomic data to digest in the coming days, including the November jobs report, the November Consumer Price Index (CPI) data, and the Federal Reserve's interest rate decision meeting. He added:
"I think once we get through those events, investors can really start to get into that 'Santa Claus rally' mode."
Lee had predicted on December 2 in an interview that Bitcoin would break through $100,000 by the end of this year, and this prediction has now been realized. Additionally, in a late November interview with Skybridge Capital founder Anthony Scaramucci, he predicted that this iconic digital asset will reach a peak of $250,000 by the end of 2025, driven by potential legalization in the US and increased adoption.
Lee's optimistic outlook on Bitcoin is based on four factors: the Fed's rate cuts, the demand for Bitcoin spot ETFs, the impact of the halving event on supply, and the potential for the incoming Trump administration to designate Bitcoin as a strategic reserve asset.
