Despite growing interest from financial institutions, Bitcoin
$115,410.75
remains vulnerable to price drops, according to BitMine chairman Tom Lee.
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.
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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.
