Bitcoin’s potential has never been more evident, with forecasts pointing to soaring prices in 2024, driven by factors such as the possible approval of a US spot bitcoin ETF and the forthcoming halving event. Fundstrat’s Tom Lee, a well-respected figure in the financial space, weighs in on this optimistic outlook.

Spot Bitcoin ETF: A Game-Changer?

Regulatory approval of a spot bitcoin ETF in the US could be a game-changer for the cryptocurrency. Lee shared his insights on CNBC, highlighting the significant impact this could have. “If the spot bitcoin gets approved, I think the demand will be greater than the daily supply for bitcoin,” he explained, projecting a clearing price that could surge to $180,000.

“If the Spot #Bitcoin ETF gets approved … the clearing price of $BTC is above $150,000.” – Tom Lee @fundstrat pic.twitter.com/ILQZqdjsZA

— Michael Saylor⚡️ (@saylor) August 16, 2023

This bullish sentiment is further echoed by recent moves in Europe, where the Jacobi Bitcoin ETF, operating under the ticker BCOIN, was launched. While Europe has taken this leap, US regulators remain hesitant, leaving applications from major asset managers like BlackRock and Fidelity in the lurch.

The Halving Effect and its Historical Significance

The halving process is an integral part of bitcoin’s design, set in place by its mysterious creator, Satoshi Nakamoto. Historically, each halving event — a moment when miners’ rewards for processing transactions are halved — has corresponded with notable price surges. With the next halving set to reduce rewards from 6.25 to 3.125 bitcoin per block, the scarcity-induced price surge is anticipated. But Lee believes that for bitcoin to experience a six-figure jump, the US’s green light on the spot ETF is crucial.

Economic Indicators Favoring Bitcoin

Macro conditions and monetary policies play a pivotal role in determining the future of assets, including cryptocurrencies. “Crypto is dependent on monetary policy, so if inflation is cooling, then we can start to bet on forward financial conditions easing and central bank easing sooner,” Lee emphasized. The prospects for traditional assets remain positive too, with massive amounts of cash poised to enter the market, further buoying the financial ecosystem.

Latest data reveals that the US economy is booming. The Atlanta Fed’s GDPNow model projects a 5.8% GDP growth in the third quarter, marking a rapid acceleration from the previous 5% forecast. Furthermore, minutes from the Federal Open Market Committee (FOMC) meeting highlight potential inflationary risks, indicating the necessity for further rate hikes.

Lee concluded with a note of caution and optimism, emphasizing the significance of a US-approved spot Bitcoin ETF. Regardless of its approval, the halving event of 2024 is anticipated to propel Bitcoin prices, though perhaps not to the six-figure highs some are hoping for.