Tom Lee, co-founder and head of research at Fundstrat Global Advisors, has outlined a cautiously optimistic perspective for Bitcoin, suggesting that current macroeconomic challenges might soon transform into catalysts for a market recovery. He attributes recent declines to headwinds like the U.S. government shutdown, a hawkish Federal Reserve, and the historic October 10th deleveraging event, which he describes as the largest in crypto history, causing ongoing ripple effects.
Lee emphasizes that regulatory clarity and institutional adoption could stabilize the market, reduce volatility, and support long-term growth. He notes that Bitcoin's sensitivity to market liquidity and risk appetite has led to technical weakness, including a break below the 200-day moving average, but broader financial indicators, such as six consecutive months of stock gains, hint at a potential positive shift in November.
Prediction markets reflect this optimism, with a 64% chance that Bitcoin will revisit $115,000 before falling to $85,000, and a 63% chance for Ethereum reaching $4,500 before dropping to $2,500. As of the report, Bitcoin was trading at $103,214 and Ethereum at $3,403, both showing gains of 1.3% and 2.6% over the past 24 hours, respectively.
Despite short-term fluctuations, Lee believes that resolving these macro issues could boost investor sentiment and attract capital inflows, positioning Bitcoin for a resilient rebound.
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