In a recent interview Tom Lee, co founder of Fundstrat Global Advisors, talks about some latest price moves but gives an altogether sunny outlook regarding the rest of the coming year ahead.
Bitcoin Price Decline in February: A Normal Cycle?
Sure, despite there being fewer bad headlines around Bitcoin this February, things stayed pretty quiet for Bitcoin overall compared to before. Mark Newton, who analyzes technical stuff for the firm Fund Strat, says that at this moment Bitcoin is going through a cyclical dip that will probably go on until the end of March this year. He had actually predicted a possible drop to about $62,000 by mid January.
He adds, "Bitcoin has made all of its recent gains over just about ten days. Therefore, trying to find the perfect entry point might cause investors to miss another rally.
Bitcoin Target: More Than $150,000 This Year?
"I think Bitcoin will surpass the $150,000 mark in 2025."
Lee cites the following reasons for his optimism:
- Increasing Institutional Acceptance: Companies like Citadel are starting to trade Bitcoin.
- Broader Use and Acceptance: Bitcoin is increasingly recognized as digital gold.
- Historical Price Patterns: Bitcoin seems to really love to go on big price binges pretty quickly sometimes.
- Macroeconomic Factors: The big banks are using their money magic to make Bitcoin an even cooler hedge against inflation.
Past Price Movements as Indicators?
Looking at past Bitcoin cycles shows that the price often recovers rapidly after phases of consolidation. For example, in 2020, Bitcoin rose from 29,000 within nine months. In 2017 that amount went from 20,000 in just one year. If that pattern continues as expected, hitting $150,000 feels realistic.
Lee also points out that during Bitcoin's most big runs it often sees really exponential growth spurts. For example, back in 2021, Bitcoin shot to its highest price ever at around $69,000 within only a matter of months.
Conclusion: A Buying Opportunity?
Although Bitcoin recently experienced a correction, the long-term perspective remains positive from Tom Lee's viewpoint. His prediction of over $150,000 in 2025 is based on growing institutional acceptance and historical market patterns. Therefore, long-term investors should remain optimistic.
