Bitcoin is just getting started after its postelection rally, according to Fundstrat’s Tom Lee, and is still on track to hit six figures by the end of the year. “Six figures is still possible for [bitcoin] before the end of the year, and then more next year,” the Fundstrat’s head of research, who has correctly called the rally in small caps and stocks broadly this year, said on CNBC’s “Squawk Box” Friday. “I think because [it’s] post-halving and now bitcoin is becoming a lot more relevant … the regulatory overhang is diminishing – that there’s a lot of upside from here.” The flagship cryptocurrency climbed to fresh records this week after President-elect Donald Trump’ s victory, which was widely anticipated as a bullish catalyst for the crypto industry at large. It’s up nearly 10% this week and is sitting just below $76,000. On Thursday it hit an all-time high of $76,973.54. BTC.CM= 5D mountain Bitcoin hit fresh records this week after the election “It’s going to be very difficult to fix the deficit with just changes in taxes and spending, but it’s probably why bitcoin is kind of interesting here, because it’s potentially a Treasury reserve asset,” Lee said. “If bitcoin rises in price, it actually helps offset the liabilities, which is the deficit.” During Trump’s campaign for re-election he promised the crypto industry a more favorable regulatory environment that would include appointing a more crypto-friendly leader to chair the Securities and Exchange Commission. He also proposed starting a strategic national crypto stockpile. His inner circle is extremely supportive of crypto assets and the industry – including Vice President-elect JD Vance who has disclosed that he owns bitcoin; biotech entrepreneur Vivek Ramaswamy, Cantor Fitzgerald CEO Howard Lutnick, and Robert Kennedy Jr. In recent years, the crypto industry has said it’s suffered from an anticrypto crusade led by Sen. Elizabeth Warren , D-Mass., and Biden-appointed SEC Chair Gary Gensler, who has regulated crypto businesses largely through enforcement actions and absent clear legislation to guide crypto companies. “We need to respect this move,” Lee said of risk assets broadly. “It was a tremendous rally postelection, and it continued yesterday. It really does reflect a lot of money was taken out of the market because of the uncertainty around the election, and now we know that, because of policy changes and animal spirits, that this is really going to benefit things like bitcoin and small caps and regional banks and financials.” Bitcoin is up 79% this year, compared to the S & P 500’s 25% gain.
