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After soaring to highs of $108,000 in December 2024, bitcoin has now fallen to approximately <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”nofollow”>$96,000. This has led to renewed debate among analysts about what this means for the leading cryptocurrency. Some think this may all be a warning, but others, like Fundstrat's Tom Lee, remain optimistic for the long term.
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$50,000 Worst case scenario?
Recently, Tom Lee shared his thoughts with CNBC during a interview in response to fears over bitcoin's latest pullback. He stated that corrections of up to $70,000 or even up to $50,000 may occur. Corrections of this type, he continued, have become extremely frequent throughout bitcoin's history; Hence, long-term investors should consider them as opportunities and not problems.
It was at the mention of $50,000 that eyebrows were raised, but Lee's confidence in bitcoin's strength remains intact. He said these corrections often set the stage for even stronger price recoveries, especially in a market as dynamic as cryptocurrencies.
A bold prediction amid uncertainty
Lee predicted that the price of bitcoin could reach <a target="_blank" href="https://www.fxstreet.com/cryptocurrencies/news/bitcoin-bull-tom-lee-sees-btc-reaching-as-high-as-250k-by-year-end-202501141251″ rel=”nofollow”>$200,000-$250,000 by the end of 2025, simply because he is convinced that this cryptocurrency will eventually serve as an economic hedge against instability and rising adoption rates among institutional investors.
Lee also says that the current price of $90,000 will be an ideal entry point for anyone thinking long-term. Their reasoning is that bitcoin's underlying fundamentals remain strong and that the recent pullback has not affected its broader growth narrative.
Inflation and market dynamics
Lee said inflation fears are not yet critical and temporary shocks such as natural disasters may affect the data. However, the Federal Reserve's cautious attitude toward rate cuts gives rise to optimism. A slower pace of inflation and strong earnings from major companies could boost risk assets, including bitcoin, in the near term.
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Investor sentiment and what's next
After Lee's comment, bitcoin recovered a bit; The result was about $96,400. The rebound shows that market participants were comforted by his analysis.
The lesson for investors is obvious: volatility will likely disrupt bitcoin's development path, but overall the long-term future looks bright. Forecasts for the market range between $50,000 and $250,000, which presents both risk and possibility.
The balancing act between fear and optimism will ultimately shape bitcoin's trajectory in the coming months.
Featured image from Shutterstock, chart from TradingView