Bitcoin long positions Tom Lee predicts that BTC will reach $200,000 within the year, with market focus shifting to the Fed's interest rate cuts.

Famous long positions in the crypto market, Tom Lee, managing partner of Fundstrat Global Advisors, told CNBC on Monday that Bitcoin (BTC) could still reach $200,000 by the end of the year. He linked this bold prediction to the anticipated rate cut actions at the Fed's monetary policy meeting scheduled for September 17, pointing out that this will serve as an important catalyst for the rise of Bitcoin.

Sensitivity of Interest Rate Cut Expectations and Cryptocurrencies

Tom Lee stated that cryptocurrencies such as Bitcoin and Ethereum are "super sensitive" to monetary policy. He believes that the Fed's interest rate cuts will inject more liquidity into the market, thereby boosting the prices of crypto assets. Although the market has recently corrected due to concerns about inflation, the U.S. economy, and macro uncertainty, the prospect of interest rate cuts has become a new bullish driver.

According to data from CMC, the recent trading price of Bitcoin is slightly above $112,000, with a rise of less than one percent in the past 24 hours. Last month, Bitcoin reached a historic high of $124,128, and subsequently fell due to investor anxiety.

Historical Predictions and Political Pressure from the Fed

Although Tom Lee has been correct in his overall judgment of the rising trend of Bitcoin prices in the past, his timing predictions for price targets have not always been accurate. For example, in 2018, he predicted that Bitcoin would reach $125,000 in 2022, but the highest price that year was only $47,737, followed by a significant decline.

Despite the inflation rate still stubbornly above the Fed's annual target of 2%, the Fed has been slow to act on interest rate cuts this year. However, analysts, including those from Standard Chartered Bank in the UK, generally expect the central bank to cut rates next week, with Standard Chartered stating last Friday that it anticipates a reduction of 0.50% from the current rate range of 4.25% to 4.50%.

In addition, the article also mentioned the political pressure surrounding the Fed. President Trump has criticized Fed Chairman Jerome Powell for not cutting interest rates earlier, raising concerns about the independence of the Fed.

Conclusion

Tom Lee's latest prediction for Bitcoin prices has once again drawn the market's attention to the close relationship between macroeconomics and encryption assets. Although his past predictions have been bold, his core argument—that the Fed's interest rate cuts will inject new vitality into the crypto market—aligns with historical data. As the Fed meeting in September approaches, the market is holding its breath. The decisions made at this meeting will not only affect traditional financial markets but may also provide a key catalyst for Bitcoin to hit new price peaks.