New Bitcoin All-Time High by January, Says Tom Lee

“I do think Bitcoin can make an all-time high by the end of January,” said Tom Lee on CNBC on Monday. “I’m pretty bullish into December even with the first day being rocky,” he said.

The BitMine chairman added that a lot of it will depend on equities recovering, which he expects, and a new Federal Reserve chairman “will help.”

Market losses accelerated when Fed chair Jerome Powell shed doubt on a December rate cut. However, the winds have changed, and CME futures markets now predict an 87.6% probability of a 0.25% cut on December 10.

Recovery From Deleveraging

Lee’s comments came as Bitcoin and crypto started the week deep in the red following another leverage flush out on Monday. BTC tanked to $84,000, also driven by fears over the end of the Yen Carry Trade as Japanese government bond yields hit multi-year highs.

Bitcoin and crypto have been disappointing when they got hit in October and again when the odds of a rate cut dropped, Lee continued. Markets haven’t really recovered and are still reeling from the massive deleveraging event, which was “not that different from the wipeout that happened in 2022 with FTX … that took eight weeks.”

We’re emerging from that, so maybe in a week or two, crypto has “fully washed out,” and that’s when it starts to participate, he said.

“We see multiple tailwinds into year-end, including end of Fed’s QT [quantitative tightening] and a December Fed cut,” Lee tweeted after the interview. He added that fundamentals were solid, which sets up good risk/reward opportunities.

BitMine Buys The Dip

Lee’s BitMine Immersion Technologies remains bullish on Ethereum, buying the dip on Tuesday, according to Arkham Intelligence. The firm scooped up another 7,080 ETH worth $19.8 million, it noted.

The latest purchase brings the BitMine total to a whopping 3.73 million ETH worth $10.43 billion. It is more than 3% of the entire supply and 61.6% of the company’s treasury target, reports SER.

Ether prices had shown no signs of recovery and were hovering around $2,800 at the time of writing.

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