Fundstrat’s Tom Lee says Bitcoin (BTC) is making bullish announcements to the stock market for one important reason.
In a new interview with CNBC’s Squawk Box, Lee says that Bitcoin has skyrocketed to a level where President Trump announced tariffs on April 2nd.
“Yes, I think a new high is possible this year (for the S&P 500). One reason is that companies are proving they manage through shocks and don’t think investors will give them enough credit. That happened in the community. The companies survived. That’s more than one thing.
And I think what was leading us, whether it was Tesla, Mag 7 or Bitcoin, was beginning to recover. In fact, Bitcoin is above the April 2nd level. So I think Bitcoin is saying that S&P should recover towards the 5,800 level in the short term. And that’s still an advantage from here. ”
Bitcoin is trading at $93,828 at the time of writing, down 1.8% over the past 24 hours. Meanwhile, the S&P 500 is 5,673 at the time of writing.
Lee also says US inflation data suggests that the Fed may begin cutting faster than later. This increases market liquidity.
“The Fed is pending and they say they are waiting for tariffs. But what’s interesting is that the European Central Bank’s inflation measurement, HICP (harmonious consumer price index), has ruled out shelters, even though the ECB (European Central Bank) has had tariff inflation that is collided with Europe or was hit by Europe soon.
IF FED excluded shelters from the core inflation calculations. Although it is currently lower than in Europe, the Fed’s funds are over 225 basis points than in Europe. So, I can actually resonate with the argument that the Fed should think should be cut now, even if they don’t know the impact of tariffs. ”
https://www.youtube.com/watch?v=yd859pt6itw
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