Bitcoin’s Surge Could Be a Sign of What’s to Come for the S&P 500, Says Tom Lee

Tom Lee, head of Fundstrat, recently shared his views on Bitcoin's ongoing rally, suggesting it may serve as a precursor to the future performance of traditional markets, particularly the S&P 500.

According to Lee, Bitcoin’s upward momentum signals an increased appetite for risk among investors and highlights the substantial amount of capital that had been sitting idle in recent years.

As the year winds down, Lee pointed out that investors will face a series of key economic reports in the coming weeks. On the radar are the jobs report from the Bureau of Labor Statistics this Friday and the December 11 release of the Consumer Price Index (CPI).

Lee expressed concerns that the jobs report might show stronger-than-expected results, which could affect market sentiment. Furthermore, he highlighted the importance of the Federal Reserve’s rate decision on December 18, noting that it could play a pivotal role in shaping investor outlook.

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Looking ahead, Lee sees potential for a “Santa Claus rally” after these data points are out, with markets likely to react positively in the final stretch of the year. In his view, the best case for 2025 would involve fewer interest rate cuts, which he believes would help sustain the ongoing bullish cycle.

As for Bitcoin, although it recently hit the historic $100,000 milestone, it has since slipped below that level. However, Lee remains confident in his long-term prediction, suggesting that Bitcoin could still hit $150,000 by the end of 2024.

Alexander Stefanov