Tom Lee predicts bitcoin’s collapse by 50%

Despite the growth of institutional interest and the emergence of spot Bitcoin ETFs, cryptocurrency remains extremely volatile and can lose up to 50% of its value, warns BitMine CEO Tom Lee. In an interview with crypto investor Anthony Pompliano, he noted that «I'm sure there will be 50 percent drops,» reminding that even with the participation of large players, the market remains subject to sharp fluctuations.

Lee explained that Bitcoin often repeats stock market movements, but on a larger scale. «If the S&P 500 index falls by 20%, Bitcoin can lose 40%,» he said. According to him, even traditional stock exchanges experience frequent 25 percent corrections, so a similar dynamic for cryptocurrencies is quite natural.

The expert also believes that the current growth cycle of bitcoin BTC $109,322.00 Mezo Wrapped BTC 0.44% Market capitalization $58.28 million VOL. 24 hours $0.72 billion differs from the usual four-year rhythm, which usually determines peak periods after halving. According to Lee, a «longer cycle» is forming, which could change the usual market patterns. Earlier, he predicted that Bitcoin could reach $ 200,000−250,000 by the end of the year. In the event of a 50% correction from this level, the price would drop to around $ 125,000, which is close to the historical high.

Assuming that Bitcoin has already reached its peak, the current 50% drop from the current price of about $ 110,000 would bring it down to $ 55,000, roughly the level seen in September 2024.

A similar assessment was recently made by veteran trader Peter Brandt, who compared bitcoin’s chart to the 1970s soybean market before the 50% collapse. At the same time, other prominent industry players, including Сейлор" href="https://noworries.news/biography/majkl-dzh-sejlor/" data-bio-id="3672">Michael Saylor, remain optimistic: in June, he said that «the crypto boom will not return.»