Fundstrat Research Director: Bitcoin breaking $100,000 is a signal for the stock market to rise by the end of the year

Fundstrat's research director, Tom Lee, stated that Bitcoin breaking through the $100,000 mark is a significant signal of a year-end stock market rise. He believes that Bitcoin's breakthrough reflects an increasing investor preference for risk assets, which also indicates that demand in the stock market will rise. Lee pointed out that investors have begun to utilize approximately $6 trillion in idle funds previously stored in money market funds. He predicts the SP 500 index will reach 6300 points by year-end, offering a further 3% increase from its current level.

In an interview with CNBC, Lee said that Bitcoin breaking through its consolidation range is a leading indicator of the SP 500's year-end performance. Although employment reports and CPI data may cause short-term fluctuations, he still expects a "Santa Claus rally" during Christmas time. Furthermore, Lee anticipates at least eight more rate cuts by the Federal Reserve within this easing cycle - each cut being 25 basis points.