Tom Lee named the main reason for the upcoming change in the value of Bitcoin

Tom Lee Predicts Bitcoin Will Reach $250,000 by 2025 Due to Supply Reduction

Supply Reduction as a Key Driver

Tom Lee, co-founder and research director at Fundstrat Global Advisors, has forecasted that Bitcoin will surpass $250,000 by 2025. Lee identified the reduction in Bitcoin's supply—specifically through its halving cycles—as the most significant factor influencing its price. According to him, Bitcoin has now entered the most advantageous phase of its bullish cycle, where the effects of decreasing supply begin to amplify price movements.

"We are now entering a period when the reduction in supply begins to have the greatest impact on the price of the asset," Lee explained. He expects Bitcoin to climb to $100,000 in the short term, with the possibility of reaching $250,000 over the next 12 months.

In addition to supply dynamics, Lee highlighted the growing interest from large corporations as a critical factor. Institutional investments are increasingly flowing into Bitcoin, further boosting its market position. He also pointed to the potential impact of a pro-crypto U.S. administration.

If the White House adopts a strategic reserve strategy that includes Bitcoin, it could significantly enhance the asset's global credibility and appeal. Lee compared this potential development to MicroStrategy's successful use of Bitcoin as a balance sheet asset, which has demonstrated substantial value creation for its shareholders.

Lee's analysis also aligns with Bitcoin's historical price behavior during halving cycles, which typically drive up prices by reducing the rate at which new coins enter circulation. He expressed confidence that Bitcoin will achieve a new all-time high as a result of this cyclical dynamic.

Lee's forecast echoes the sentiments of other market analysts. For instance, David Puell of Ark Invest recently suggested that Bitcoin is currently in a consolidation phase before breaking past $100,000. Puell predicts the cryptocurrency will exceed $104,000 by early January, reinforcing the view that Bitcoin is poised for substantial growth in the near future.

Tom Lee's optimism about Bitcoin's trajectory is grounded in its foundational economics—limited supply and increasing demand. With institutional adoption accelerating and the potential for supportive policies under a new U.S. administration, Bitcoin's journey to $250,000 appears increasingly plausible. This milestone would not only validate Bitcoin as a premier financial asset but also solidify its role in the portfolios of investors and institutions worldwide.