Bitcoin is trading far from its all-time high following a severe correction, or perhaps one that is still ongoing. While all attention is focused on lower price levels, well-known analyst Tom Lee believes a new record is already on the cards for next month. He has a clear explanation for his optimism.
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Lee Remains Optimistic Despite the Bloodbath #
“I think Bitcoin can put in an all-time high by the end of January,” Lee said in an interview with CNBC on Monday. “I’m pretty optimistic about December, even though the month got off to a bit of a rough start,” he added.
Lee is the founder and head researcher at Fundstrat Global Advisors, an independent research firm focused on investment strategies for institutional investors.
In November, the price of Bitcoin plunged by over 17 percent, marking its worst eleventh month of the year since 2018.
As if that wasn’t painful enough, December began with a setback: on the very first day of the month, the price dropped by more than 4 percent.
Bitcoin’s record stands at $126,200, reached on October 6. The digital currency is now trading 31 percent lower and even fell 36 percent below that peak last month.
While many investors and analysts have grown discouraged, Lee remains optimistic. He did note, however, that much will depend on the recovery of the stock markets, for which he has high confidence.
Furthermore, he sees a “less aggressive” U.S. Federal Reserve as a tailwind for the market.
The arrival of a new chairman could play a major role in this. President Donald Trump knows who he will nominate as a replacement and said on Sunday that the announcement will follow soon. He emphasized that he expects new interest rate cuts from his choice. This is good news for crypto, as it would make more capital available to flow into the market.
According to Lee, the crypto market is still recovering from a massive deleveraging, similar to the situation around FTX in 2022. At that time, it took eight weeks for the market to stabilize somewhat.
“We are now in the final phase of that. Give it another week or two, and crypto will be ready to rise again,” Lee stated.
Lee’s Bitmine Continues to Greedily Buy ETH #
Lee is also the chairman of Bitmine Immersion Technologies, a publicly listed bitcoin miner that has been accumulating ethereum at a dizzying pace this year. No other company in the world holds as much ether on its balance sheet.
Bitmine took its first step in June. Other companies and institutions had already purchased some ether by then, but Bitmine dove in with such conviction that it quickly rose to the top of the rankings.
While many parties with crypto reserves have been hitting the brakes in recent months, Bitmine continues to buy more unflinchingly.
Last week, another 96,798 ETH was added to the books, worth about €233 million. This past Saturday, a new batch of 16,693 ETH (€40.26 million) followed, and on Monday, another 7,080 ETH (€17.07 million) was added on top.
The major goal is to acquire five percent of all circulating ether. An ambitious mission, but the company is on track with 3.7 million ETH already in its vault. At the current ethereum price, the holdings are valued at €8.92 million.