It seems like a lifetime ago that the Bitcoin price grazed the $20,000 mark in late 2017, and bulls have been pining for a new breakneck rally ever since. According to Fundstart Global Advisors co-founder Tom Lee, the catalyst for BTC’s march to a new all-time high could come from an unlikely place: the stock market.
Lee theorizes that an interesting correlation has formed between the flagship cryptocurrency and equities. To illustrate that, he speculates that Bitcoin may actually become a “risk-on” asset once equities break into new territory.
Lee pointed to a number of bullish fundamental and technical factors buoying Bitcoin right now but suggested that equities may need to take the lead on this one. His base-case rally is 125 points for the S&P 500, which would take the index to an all-time high of roughly 3,125 by the end of the year (the S&P 500 closed at 3,007.39 on Friday).