“Bitcoin bull market cycles come every four years and this is a big one,” CNBC quoted Lee as saying in an interview, adding that “it could really go up to more than $100,000 this summer.”
With bitcoin ushering in the year at around $30,000, Lee said even just “a 10x value from that” would bring the crypto’s price to $300,000. However, he pointed out he wasn’t sure if history would repeat itself.
So after bitcoin peaks out — whether it’s $100,000, $200,000, or $300,000, people should be aware that it could lose as much as 80% to 90% of its market value from its all-time high, Lee said.
In the crypto industry, analysts call the weakening “Bitcoin Winter,” and it can last from two to three years. “The crash will come when people least expect it,” Ran Neuner, chief executive officer of blockchain investment fund Onchain Capital, said.
BTC traded at $57,500 at press time and hit a peak of $61,000 earlier this month. Lee’s forecast of a so-called crypto winter involves a 90% plunge in value from whatever peak value it hits.
Bitcoin has seen a strong 2021 so far, with the cryptocurrency barrelling past multiple record levels this year and exceeding the $60,000 mark earlier this month. Based on figures by Coin Metrics, Bitcoin last traded at $57,660.25.
Bitcoin rallied by nearly 800% from last March when it dropped as the COVID-19 pandemic began to hammer the world’s economy.
Supporters of bitcoin say the world’s largest digital token in terms of value will continue its impressive climb as institutional investors increasingly become involved. “People are not just investing for a speculative run anymore. They are buying it because they see Bitcoin’s value,” Dan Held, growth lead at cryptocurrency exchange Kraken, said.
Meanwhile, critics say Bitcoin’s volatility indicates its institutional adoption will be limited. Many contend that it’s in a bubble already propelled by massive amounts of stimulus and is poised for a price collapse similar to after 2017 when bitcoin crashed below $4,000 from $20,000 in just over a year.
Image courtesy of Alesia Kozik/Pexels
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