Mr Lee of Fundstrat Global Advisors said there is an “important correlation” between emerging markets and Bitcoin.
Speaking on CNBC, Mr Lee said: “In general, we thinking mining and fundamental factors like network effect really drive Bitcoin’s value. But macro factors have an effect on network value.”
Mr Lee referenced a chart showing two lines – the MSCI emerging markets index relative to the S&P and Bitcoin’s price.
“You might wonder ‘what’s the linkage? Why do we think they’re connected?’. Well, there are two factors.
“The first is hedge funds, which typically rent emerging markets stock. So they do risk on, risk off. When they are risk off Bitcoin also suffers because they are risk off.
“The second reason has to do with wealth effect. Wealth effect means if you’re living in an emerging market and you see your stock market fall hugely it means you have a lot less money to buy Bitcoin so that affects the network effect because you can’t buy Bitcoin.
“So I think there’s two reason why an emerging markets index actually influences Bitcoin.”
The MSCI Emerging Markets Index, which is down almost 8 percent so far this year, is used to measure equity market performance in emerging global markets.
Mr Lee explained the trend and later said: “Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying Bitcoin.”
The bullish cryptocurrency expert said if the dollar weakens and the Federal Reserve halts its hike rate policy then both areas of the market could surge.
Lastly, Mr Lee said: “I still think it’s possible.”
He added: “Bitcoin could end the year explosively higher.”
Bitcoin price is $6,739.28 at 18:30 BST, on Monday, according to CoinDesk.
Bitcoin and other cryptocurrencies have faced criticism by banks and finance experts, with billionaire Bill Gates telling CNBC he would bet against the Bitcoin and short it if he could.
The Microsoft co-founder said: “As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
He added: “I agree I would short it if there was an easy way to do it.”
Former PayPal CEO Bill Harris also claimed Bitcoin is the “greatest scam in history”.