PANews reported on December 6 that Tom Lee, head of research at Fundstrat, said that Bitcoin's breakthrough of the $100,000 mark is an important signal for the stock market to rise at the end of the year. He believes that Bitcoin's breakthrough reflects investors' growing preference for risky assets, which also indicates that stock market demand will rise. Lee pointed out that investors have begun to use about $6 trillion of idle funds previously deposited in money market funds. He expects the S&P 500 index to reach 6,300 points by the end of the year, with 3% room for growth from the current level.
Lee said in an interview with CNBC that Bitcoin's breakout from the consolidation range is a leading indicator of the S&P 500's year-end performance. Although the employment report and CPI data may bring short-term volatility, he believes that the "Santa Claus market" during the Christmas period can still be expected. In addition, Lee expects the Federal Reserve to cut interest rates at least 8 times in this round of easing cycle, each time by 25 basis points.
