Tom Lee, head of research at Fundstrat, recently spoke with CNBC.
Lee’s outlook is amidst economic uncertainty as he navigates the first 100 days of President Trump’s inauguration. Several factors contribute to market volatility, including the Ministry of Expenditure (DOGE) program, which imposes austerity measures to reduce public spending, and austerity measures that create further uncertainty among businesses and investors.
Bitcoin (BTC) fills the CME gap on Friday, currently at $83,000, and is experiencing yet another price reversal this year, exceeding 10%. Meanwhile, the Nasdaq 100 will also fall by nearly 10%, with another similar decline likely to cause the bear market.
Lee points to future job data for Friday as an important event that can determine the direction of the short-term market. He expects an early wave of panic if the data is worse than expected, but Lee also believes it could urge the Federal Reserve to accelerate interest rate cuts.
The futures market is currently priced at a 75 basis point reduction this year, which will allow the benchmark federal funding rate to range from 3.50%-3.75% by the end of the year. So far, the Fed has already made 100 basis points worth of reductions in this cycle.
Lee is also working on the Bitcoin struggle and notes that the recent recession is driven not by negative news but by cyclical market forces. He looks at a potential short-term price target of $62,000, but still has over $150,000 left by the end of the year.
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