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Bitcoin will drop 50% – Tom Lee

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Tom Lee on bitcoin: It looks like bitcoin will be up 300% this year… but it could be down 40-50%

Bitcoin will drop 50% - Tom Lee

Bitcoin will drop 50% – Tom Lee
CONTENT

  • Bitcoin is facing a major correction

  • By the end of the year, the price of bitcoin may rise by 300%

  • Cryptocurrency will receive a powerful boost in price after millennials come to the market

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Well-known cryptocurrency analyst and investor Tom Lee, who predicted the growth of bitcoin to $ 40,000, is confident that the coin will soon be corrected by 50%.

Tom Lee is expecting an increase in volatility

Bitcoin will drop 50% - Tom Lee

In December last year, cryptocurrency analyst Tom Lee predicted an increase in the value of bitcoin to $ 40,000. Already in the first week of January 2021, the cryptocurrency really reached a record high, exceeding $ 41,000. Along with the rise in the value of bitcoin, the volatility of the asset increased sharply.

In a recent interview, Tom Lee admitted that in the near future the price of bitcoin could drop by 50% due to high volatility, and investors should be prepared for such a correction..

Also, the co-founder of Fundstrat Global Advisors claims that the fall in the value of bitcoin may be influenced by the explosive growth of shares, which is likely to occur at the end of January. During the same period, the cryptocurrency market can seriously sink.

“Bitcoin is a hypervolatile asset. Our forecast for risky assets is as follows: stocks will show explosive growth and peak somewhere in late January or April, while S&P will reach the 4000 area, after which a deep drawdown will begin. If S&P falls by 10%, then bitcoin will go down 40% – 50%, “Lee said in an interview with Yahoo Finance Live..

The expert is sure that such a correction is the norm for the cryptocurrency market. A similar situation was already observed in 2017, when the cost of military-technical cooperation increased by 1200%, and then fell sharply. Moreover, a correction is even necessary, so investors will get new attractive entry points.

“If the situation develops according to the 2017 scenario, bitcoin will grow by at least 300%. Of course, growth will not be straightforward. We are in for ups and downs, but at the end of the year, bitcoin will cost much higher, “said Tomi Lee.

The decline in the price of bitcoin is also predicted by analysts at Flipside Crypto. At the moment, 95% of all bitcoins are stored on 2% of addresses, so if the whales are preparing to sell, a couple of large transactions will be enough to trigger a large-scale correction.

Millennials will raise the price of bitcoin to sky-high rates

At the moment, the main driving force behind bitcoin is large and institutional investors who buy bitcoin en masse in the hope of protecting their own finances from inflation, as well as increasing their savings. In 10 days in 2021, several large corporations announced their plans to buy bitcoin at once. Thus, the investment company GreenPro Capital intends to purchase cryptocurrency in the amount of $ 100 million.

Bitcoin will drop 50% - Tom Lee

And after private investment funds, institutional investors in the United States began to think about buying bitcoin. The other day, the head of the investment firm Grayscale Investments, Michael Sonnenshine, announced this. According to the expert, the US pension funds will become the next major buyers of bitcoin.

However, Bitcoin has not yet reached its peak price. The cryptocurrency will receive a powerful boost after millennials come to the market. They will start investing billions of dollars in cryptocurrencies.

“I think for the younger, digital generation, bitcoin is the digital asset they will use as a store of value,” said Tomi Lee.. 

A similar opinion was voiced by Grayscale analysts. They are confident that over the next 25 years, $ 68 trillion will pass from the older generation to the young, and investment capital will begin to spill over into uncorrelated assets like Bitcoin. The survey showed that millennials are much more likely to buy, hold and use bitcoin, but most of them have not yet reached their peak of careers. When this happens, the price of bitcoin may exceed $ 500 thousand..

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