- Tom Lee, on CNBC, predicted Bitcoin’s potential to surpass $110,000, catching up to gold’s $3,400 per ounce rally, as institutional deleveraging eases and it gains traction as a non-dollar asset amid a 3.5% surge.
- Despite a 14% S&P 500 decline and Dow futures dropping, Lee suggested the market’s structural low at 4,800 may hold, though tariff uncertainties and Trump’s clash with Fed Chair Powell could drive volatility.
- Lee highlighted the potential for a positive policy shock, such as tariff de-escalation with one of 15 trade partners, while celebrating Fundstrat’s $1 billion ETF milestone, focused on resilient AI and cybersecurity stocks, at the NYSE bell-ringing at 09:30.
Wall Street’s turbulent start to 2025 continues to challenge investors, with stock futures reflecting persistent unease as Dow Jones Industrial Average futures dropped 340 points and S&P 500 futures fell 52 points, while Bitcoin surged 3.5%, as discussed by Tom Lee, Fundstrat co-founder and managing partner, on CNBC’s Squawk Box. Lee, a veteran strategist with over 25 years of experience, highlighted the interplay between macroeconomic uncertainties and market dynamics, noting that President Donald Trump’s tariff policies, announced on April 2, have contributed to a 14% decline in the S&P 500 and heightened volatility, with the VIX peaking around April 7. He suggested that while the market may have seen its structural low at 4,800 a couple of weeks ago, there remains a risk of drifting close to that level again in the coming weeks due to cautious investor sentiment and economic uncertainties stemming from trade tensions.
Lee’s optimism about Bitcoin, which he sees catching up to gold’s recent rally to $3,400 per ounce, is rooted in its potential as a non-dollar asset, particularly as institutional deleveraging pressures from earlier this year have eased. He pointed to Bitcoin’s previous high of over $110,000, suggesting significant upside potential as it aligns with gold’s safe-haven appeal amid a weakening dollar and tariff-induced fears. However, Lee tempered expectations for equities, acknowledging that while companies remain resilient and earnings season could reveal strengths, the market faces risks from Trump’s ongoing clash with Federal Reserve Chair Jerome Powell, which has raised concerns about Fed independence and inflation control, as Powell noted on Wednesday. Lee posited that a positive policy shock, such as a de-escalation of tariffs with one of the 15 countries involved in trade deals or even China, could provide a market boost, though overnight developments suggested limited progress with China.
The discussion also touched on Fundstrat’s milestone, with Lee set to ring the opening bell at the New York Stock Exchange at 09:30 to celebrate an ETF reaching $1 billion in assets, dubbed the “granny shot” for its focus on stocks tied to enduring themes like AI, cybersecurity, and millennial trends. These stocks, selected for their strong correlation to multiple long-term growth drivers, aim to offer resilience despite market downturns, though Lee acknowledged they are not immune to declines. The broader market context, including a 7% drop in major indices since April 2 and gold’s 2.5% rise, underscores the flight to safe-haven assets amid trade war fears and Fed policy uncertainties, as noted in recent analyses. Lee’s insights reflect a cautious yet opportunistic outlook, balancing the potential for market stabilization with the realities of geopolitical and economic headwinds shaping investor sentiment in 2025.
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