Tom Lee Warns Bitcoin Could Fall 50% Despite ETF Surge
Bitcoin remains highly volatile despite institutional backing and spot ETF approval. BitMine chairman Tom Lee warns that a 20% drop in equities could trigger a 40%–50% Bitcoin slump. After its $69,000 peak in 2021, Bitcoin lost half its value in two months. Lee sees a shift to a longer post-halving cycle and sticks to his year-end $200,000–$250,000 target, implying a potential pullback to $125,000 on a 50% correction. Veteran trader Peter Brandt draws parallels to 1970s commodity crashes, reinforcing near-term risk. Conversely, proponents like Michael Saylor argue Bitcoin volatility will ease as institutional adoption grows.
Bearish
Tom Lee’s warning of a potential 50% Bitcoin drop underscores heightened short-term risk for traders. Bitcoin’s history of magnified equity corrections and comparisons to past commodity crashes suggest increased volatility ahead. The possibility of a pullback to $125,000 could trigger stop-loss cascades, pressuring market stability. However, Lee’s longer-cycle outlook and year-end $200,000–$250,000 forecast highlight potential long-term bullish momentum if volatility subsides post-ETF adoption. Overall, immediate sentiment turns bearish due to drawdown risks, while the extended cycle view offers a cautious bullish backdrop.