Bitcoin Could Drop Hard: Tom Lee Predicts Major Correction
Bitcoin’s volatility hasn’t changed. Tom Lee, the chair of BitMine, cautioned that in some cases, it might still lose up to half its value. In an interview with cryptocurrency entrepreneur Anthony Pompliano that was released on Thursday, Lee expressed his opinions on the subject.
I’m sure there will be 50% drawdowns,
Lee
Experts Debate: Is Bitcoin Losing Its Volatility?
On the other hand, more market players have recently asserted that Bitcoin will become less volatile. They think the market is becoming more stable as a result of spot Bitcoin ETFs and rising institutional interest. However, Lee maintained that Bitcoin continues to track and frequently magnifies the swings of the stock market.
The stock market has more frequent 25% drawdowns. The stock market has made a lot of progress over the last six years; we’ve had an unusually large amount of 25% drawdowns. So if the S&P is down 20, Bitcoin could be down 40,
Lee
Additionally, according to Lee, Bitcoin has deviated from its traditional four-year pattern, which usually predicted a peak in October. Instead, he said, a longer cycle is now developing.
Bitcoin’s Next Move: $200K Upside or 50% Drop?
Earlier this month, Lee reaffirmed his prediction that Bitcoin will hit $200,000 to $250,000 by the end of the year in an interview with the Bankless podcast. The price of Bitcoin would reach about $125,000, which is close to its current all-time high, if it were to correct 50% from that level. According to some proponents of the four-year cycle, if Bitcoin has already peaked, it would drop 50% from its current price of $109,981 to about $54,990. This level hasn’t been observed since September 2024, according to CoinMarketCap.
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