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Co-founder and head of research at Fundstrat Global Advisors, Tom Lee, has maintained his bullish stance on the global stock market. The Wall Street strategist previously asserted that the market was in an “everything rally” where the value of investment vehicles was expected to surge due to favorable economic conditions.
His year-end price prediction for Bitcoin during this 4th quarter, was that the leading cryptocurrency would reach as high as $100,000. Speaking with CNBC yesterday, Lee reiterated that his call was still intact and his outlook for the stock market remains largely unchanged.
The market strategist cites the approach the Federal Reserve bank is taking, as a bullish driver for the stock market, asserting that with the FED being open to reversing the planned quantitative easing and interest rate spike should the COVID-19 Omicron variant pose a threat to the economy, investors would be willing to continue making risk investments as they know that the FED has their back. According to him, the FED roadmap is such that investors understand and agree with it.
…the [FED] framework includes the risk that variants like the Delta variant slowed the economy, and if Omicron has an impact, they could roll back this framework,” Lee said. “That’s a template the market understands and agrees with.
Lee also predicts that the S&P 500 index which is currently around $4,600 will reach $4,800 before the year runs out and even advance to reach $5,000.
Market players collectively maintain optimism as the year closes
Lee’s optimism is shared by a lot of Cryptocurrency market participants. Market participants expect that a lot of Cryptocurrencies will finish the year bullishly. Bitcoin is one such cryptocurrency that has this shared optimism. According to Plan B, the creator of the Bitcoin S2F model, while Bitcoin has historically performed well in Q4, in times when it does not, it always goes on to surge in the preceding quarter.
Similarly, Ether is also expected to finish the year strong. This is already materializing as quarter on quarter, the second largest Cryptocurrency by market cap is up around 33.2%. Ether has also recently been recovering from the price dip as it has once again crossed the $4,000 mark from and is currently trading at around $4,032, up 0.21% on the day. Coming into the new year, EIP-1559 which has already removed over 1.2 million ETH from circulation is expected to make the Cryptocurrency more scarce and lead to further price surges.
Other altcoins including Solana’s SOL, and Terra’s LUNA, and meme-coins including DOGE and SHIB are also posting up great performances as the end of the year approaches.