During a recent appearance on CNBC, Fundstrat’s Tom Lee predicted that the price of Bitcoin could potentially surge to $2.5 million in the long term.
“I think, at a minimum, it should have the same network value as gold…But I think Bitcoin is more valuable than gold. I mean Bitcoin, could be $2 million $3 million long term, I mean even higher.” Lee added.
Lee is convinced that the leading cryptocurrency could cross the $250,000 mark as soon as this year.
More dovishness on the horizon
According to Lee, Bitcoin is responding to global liquidity, which is currently moving up.
The federal funds rate is currently set at 4.25%-4.50%. As reported by U.Today, it remained unchanged following the latest FOMC meeting, which took place in June.
However, as noted by Lee, investors believe that the U.S. Federal Reserve will adopt a more dovish stance in the future. Two rate cuts are expected to take place this year.
The supply-demand imbalance
Citing Bitwise’s research, Lee also pointed out that 95% of all existing Bitcoins have already been mined, but only roughly 5% of the global population actually has exposure to the leading cryptocurrency.
“So, I just think that there’s still a huge demand versus supply imbalance, meaning there’s a lot more potential buyers of Bitcoin over the next ten years,” Lee said.
