Tom Lee Says Crypto Rally Is Only First Wave as Institutions Bet on Big Fourth Quarter
Summary
- Tom Lee said the recent rise in cryptocurrencies is still in the early stages and that institutional investors are betting on further gains in the fourth quarter.
- He said institutional investors are buying crypto-related stocks, and that the sharp increase in trading volume signals expectations for a major fourth-quarter rally.
- He said Bitcoin could still reach $100,000 and $150,000, while citing a U.S. interest-rate increase and the future direction of long-term yields as key variables for the crypto market.
Forecast Trend Report by Period
Tom Lee, co-founder of Fundstrat, said the recent rise in cryptocurrencies is still in its early stages, with institutional investors betting on further gains in the fourth quarter.
Bloomingbit reported on Sept. 1, citing crypto-focused media outlet BlockBeats, that Lee told CNBC the current advance is only the first wave of the rally. The move began before many investors had a chance to get in, he said.
Lee said institutional investors are clearly buying crypto-related stocks. The sharp increase in trading volume signals they are positioning for a major fourth-quarter rally, he added.
On Bitcoin, Lee said it would not be difficult for the token to climb above $100,000 because relatively few people still hold cryptocurrencies. He said $150,000 also remains possible.
He also pointed to the possibility of a U.S. interest-rate increase as a variable. Even if the Federal Reserve raises its benchmark rate, financial conditions could effectively ease if long-term Treasury yields decline, Lee said. That would make the path of long-term yields a key factor for the crypto market going forward.
