During a recent interview on CNBC, Bitcoin bull Tom Lee opined that the markets were in a good position to rally.
Lee has pointed to the fact that the median short interest in stocks has surged to the highest level in three years.
"Now we just need a positive catalyst. I think as long as inflation tracks better than expected, I think we’re in a good position to rally," he said.
Lee has added that the market could be close to a potential market bottom.
Fundstrat's Lee also believes that sharp corrections are normal during bull market cycles despite growing bearishness. "There's a lot of top callers. To me, there's a good opportunity."
Last week, US Federal Reserve chair Jay Powell acknowledged that returning inflation to the much-coveted 2 percent target would take "longer than expected." This came after long-term inflation expectations spiked to the highest level in more than a year.
According to the BofA credit investor April survey, inflation remains the top worry for investors. With that being said, nearly half of investors (45%) expect the central bank to pull off a soft landing.
On Apr. 17, the price of Bitcoin plunged below the $60,000 level just days ahead of the halving. The drop was partially caused by the diminishing odds of a June rate cut due to the most recent inflation data.
Notably, hikes or zero cuts are now more likely than three rate cuts this year.
However, cryptocurrency bull Mike Novogratz is convinced that the Fed will still have to cut rates this year.
Gamza Khanzadaev
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov