Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁
Tom Lee Warns: Bitcoin Could Still Crash 50% Despite Wall Street Buzz
Key Takeaways
- Despite growing institutional interest, Bitcoin could still see sharp 50% declines, warns BitMine chairman Tom Lee;
- Lee believes Bitcoin mirrors stock market movements but tends to react more strongly during downturns;
- Bitcoin may have broken from its four-year price cycle, with Lee still projecting a $200,000 to $250,000 price target by year-end.
Despite growing interest from financial institutions, Bitcoin
In an interview with Anthony Pompliano, Lee stated that Bitcoin could still fall by as much as 50% under the right conditions.
While some believe that Bitcoin’s volatility is fading due to the rise of spot exchange-traded funds (ETFs) and more mainstream investment, Lee does not share that view.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What Is Tether? (USDT SIMPLY Explained With Animations)
He pointed out that Bitcoin often moves in line with stock markets, and its reactions can be stronger.
Lee explained that stock indexes have seen more frequent 25% declines in recent years. Because Bitcoin often reacts more strongly than traditional markets, he noted that if the S&P 500 were to drop by 20%, Bitcoin might fall twice as far.
He also said that Bitcoin appears to have moved away from its traditional four-year price cycle, which previously suggested a high point around October.
During a recent appearance on the Bankless podcast, Lee restated his prediction that Bitcoin could reach between $200,000 and $250,000 by the end of the year.
However, he also acknowledged that even from those levels, a 50% correction could bring the price down to around $125,000. That would still be close to Bitcoin’s all-time high.
Recently, market analysts reported that Bitcoin’s price struggled to build momentum while long-term holders continued to cash out. What did they say? Read the full story.