Tom Lee Says Bitcoin’s $100K Milestone Could Be A ‘Precursor’ For Bullish Stock Moves, Asks Investors To Stay Focused On A ‘Christmas Santa Claus Rally’
By Benzinga
Bitcoin’s (CRYPTO: BTC) surge beyond the $100,000 mark could be a harbinger of a bullish stock market, influential financial analyst Tom Lee said on Thursday.
What Happened: Lee, managing partner and head of research at Fundstrat Global Advisors, said in a CNBC interview, “I think Bitcoin rising is, to me, breaking out of a holding pattern is a precursor to what the S&P 500 is going to do for the rest of the year.”
Lee noted that Bitcoin’s rally reflected the market’s pro-risk sentiment. “I think it also just signals how much capital has been idle for the last couple of years, either parked in money market cash or waiting to see if the economy survives.”
Lee said investors would have a lot of macroeconomic data to parse in the coming days, including the November jobs report, the November Consumer Price Index data, and the Federal Reserve’s meeting to decide on interest rates.
“I think once we’re through these events, investors can actually then invest into sort of that Christmas Santa Claus rally,” he added.
Lee also doubled down on his earlier projection of the S&P 500 index rallying to 6,300 by year-end.
Why It Matters: Earlier in the week, Lee had forecast Bitcoin’s rise above $100,000, which has now come to fruition.
He also projected the marquee digital asset to hit a high of $250,000 by the end of 2025, driven by potential legitimization in the U.S. and increased adoption.
Cryptocurrency advocates have high hopes that President-elect Donald Trump’s administration will be favorable for the industry. Meanwhile, the President-elect recently appointed renowned venture capitalist David Sacks as the first ever “White House AI & Crypto Czar” on Thursday.
Price Action: At the time of writing, Bitcoin was exchanging hands at $60,860.32, down 3.35% in the last 24 hours, according to data from Benzinga Pro. The S&P 500 closed 0.19% lower to 6,075.11 during Thursday’s regular session.
Photo Courtesy: Shutterstock.com
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