Fundstrat's Tom Lee foresees Bitcoin hitting $150,000, suggesting it could serve as a treasury reserve asset to alleviate the US national deficit. He attributes this potential rise to favorable post-election market conditions and diminishing regulatory challenges in the crypto space.

Bitcoin and Small-Caps Set for Growth Amid Market Shifts, Says Fundstrat’s Tom Lee

Market dynamics may impact Bitcoin and small-cap companies; Fundstrat's Head of Research, Tom Lee, recently shared his views on the matter.

He boasted that his squad had been closely monitoring the betting markets. As known, there was a huge selloff not long ago when investors withdrew their money due to the uncertainty surrounding the next election.

Post-Election Gains Expected to Benefit Bitcoin and Small-Cap Investments

Lee anticipates extremely favorable circumstances for Bitcoin and small-cap investments in the wake of Trump's victory and impending legislative shifts, which he believes will provide enormous upside.

A decline in national obligations caused by an increase in Bitcoin's price, he continued, would assist in reducing the deficit. He further emphasized the growing importance of Bitcoin in the modern financial landscape.

Bitcoin Eyes $150,000 as Regulatory Pressures Wane

Bitcoin might hit six digits by the end of the year, according to the eternal optimist Lee. He set a goal of approximately $150,000 to be achieved after momentum from the halving increases and regulatory hurdles begin to fade.

After the election, investors will move from being cautious to being optimistic, as Tom Lee rightly predicted. This will lead to a rise in risk assets, including Bitcoin. The stable environment for growth that Lee predicts would be beneficial to crypto assets is likely to be brought about by supportive economic conditions and favorable Federal Reserve policies.

Investment Confidence on the Rise, Bolstering Crypto’s Market Momentum

He had earlier speculated that this surge could increase investment in cryptocurrencies by boosting market confidence. Bitcoin and other cryptocurrencies would likely experience prolonged momentum and price growth as a result of this.

Tom Lee has already pondered the historic post-election surge, which saw the market rise 3% and was one of the most notable swings in post-election history.

Animal Spirits and Business Optimism Expected to Drive Market Surge

Investors retreated cautiously in the lead-up to the election, he noted in his first interview after the election, and now "animal spirits" are unleashed. He said that market optimism is being propelled by anticipations of deregulation, mergers, and an atmosphere that is generally supportive of businesses. By the end of the year, he estimates an increase of 5-10% as well, Coingape shares.

Additionally, Lee mentioned that following the election, the VIX index, which measures market volatility, was normalized. Investors' improved sentiment was reflected in this, he said, as they returned to the market.

Tom Lee Unveils Fundstrat’s “Granny Shots” ETF

"Granny Shots" ETF was also unveiled by Tom Lee. It's a theme fund that uses Fundstrat's basic stock portfolio strategy as its foundation. It finds companies whose stock prices are influenced by important trends, or "the whites" as he calls them, such as artificial intelligence, Fed easing, and millennial spending.