Key Points
- Tom Lee predicts Bitcoin will reach $250,000 by the end of 2025, despite recent market dip.
- Despite short-term bearish outlook, Lee maintains Bitcoin will be one of the top-performing assets in 2025.
Tom Lee, an American entrepreneur and managing partner at research firm Fundstrat, has forecasted that Bitcoin will reach a value of $250,000 by the end of 2025.
This prediction remains steadfast despite the recent drop in Bitcoin’s value, which fell below $90,000 for the first time this year.
Lee’s Predictions
In a discussion with CNBC host Andrew Ross Sorkin, Lee reiterated his bullish prediction for Bitcoin.
He noted that Bitcoin is currently down approximately 15% from its all-time high of $108,000, a correction he considers normal for such a volatile asset.
Despite his long-term optimism, Lee holds a bearish outlook for Bitcoin in the short term.
He suggested that Bitcoin could drop to $70,000, following global liquidity trends.
Understanding Market Trends
When questioned about the feasibility of Bitcoin dropping to $70,000, Lee explained the concept of Fibonacci retracement levels.
He stated that assets often pull back from their rally points, with $70,000 being one potential retracement level for Bitcoin.
Sorkin further inquired whether current Bitcoin buyers, such as MicroStrategy with their recent 2,530 BTC purchase, were buying at “fair prices”.
Lee responded that investors should focus on the long term, reassuring that no one will lose money buying at $90,000.
According to data from CoinMarketCap, Bitcoin is currently trading at $92,051.04, down 3.21% in the past 24 hours and 9.24% in the last 30 days.
The digital asset lost its $2 trillion market cap after dropping below $100,000 earlier this month and now has a market cap of $1.82 trillion.
The weekly chart provided by TradingView shows that the RSI levels for Bitcoin remain bullish over a longer time frame.
The RSI is valued at 60.86, indicating that bulls are still in control. However, the gradient of the line suggests an increase in selling pressure, which could lead to further price declines.
