Bitcoin not immune to 50% crashes despite Wall Street love: BitMine’s Lee

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Bitcoin has not escaped its volatile quality and could inactive suffer arsenic overmuch arsenic fractional its worth nether definite circumstances, warns BitMine seat Tom Lee.

“I’m definite determination volition beryllium 50% drawdowns,” Lee said during an interrogation published connected Thursday with crypto entrepreneur Anthony Pompliano.

There has been an expanding fig of marketplace participants successful caller times who person argued that Bitcoin won’t beryllium arsenic volatile anymore, arsenic spot Bitcoin ETFs and organization involvement bring greater stableness to the market.

However, Lee argues that Bitcoin (BTC) inactive follows the banal marketplace and often amplifies its movements.

“The banal marketplace has much predominant 25% drawdowns, “ helium said. “The banal marketplace has made a batch of advancement implicit the past six years; we’ve had an unusually ample magnitude of 25% drawdowns,” Lee added.

“So if the S&P is down 20, Bitcoin could beryllium down 40,” helium said.

“Longer cycle” processing successful the aboriginal for Bitcoin

Lee besides argued that Bitcoin has breached from its emblematic four-year cycle, which would person pointed to a highest successful October, suggesting alternatively that a “longer cycle” is present processing for Bitcoin.

Speaking connected the Bankless podcast earlier this month, Lee reiterated his forecast for Bitcoin to scope $200,000 to $250,000 by year-end.

A 50% correction from that level would instrumentality BTC’s terms to astir $125,000, adjacent its existent all-time high.

If Bitcoin has already peaked, arsenic immoderate four-year-cycle believers suggest, a 50% diminution from its existent terms of $109,981 would bring it down to astir $54,990, a level not seen since September 2024, according to CoinMarketCap.

Peter Brandt precocious echoed a akin sentiment

He’s not the lone expert successful caller times to marque specified bearish claims, with seasoned trader Peter Brandt precocious echoing a akin sentiment.

Brandt precocious said that Bitcoin’s terms illustration mirrors a akin signifier to the soybean marketplace successful the 1970s earlier plummeting 50%.

Such steep Bitcoin declines person occurred earlier successful a substance of months. In November 2021, Bitcoin deed a grounds precocious of $69,000 earlier plunging astir 50% to astir $35,000 successful conscionable implicit 3 months by precocious January 2022.

Other Bitcoin advocates are assured that the downside won’t beryllium arsenic drastic successful the future.

Strategy president Michael Saylor said successful June, “Winter is not coming back.”

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