Bitcoin Could Crash Into $50,000s Before Skyrocketing: Fundstrat
in the most recent appearance Tom Lee, chief information officer and head of research at Fundstrat Capital, said on CNBC’s “Squawk Box” that Bitcoin could still fall before a sharp rebound. During the Jan. 13 show, Lee addressed broader market concerns such as inflation, bond yields and earnings, then compared that to the trajectory of the cryptocurrency space, specifically Bitcoin.
Will Bitcoin drop below $50,000?
“Bitcoin is down approximately 15% from its highs, which is a normal adjustment for an extremely volatile asset and will follow global liquidity. We were early on Halving cycle“, Lee said, stressing that price swings of this magnitude are common in the digital asset space. He also elaborated on technical indicators that indicate future volatility, saying, “One level is $70,000. “
An unlikely scenario is that the price drops to around $50,000, but it is still possible. “It could go as low as $50,000. But it’s not a new level. That’s where it hits before it starts to bounce back,” Lee commented.
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Lee’s view paints a two-pronged path for Bitcoin’s price: a possible drop to “$50,000,” before rising, possibly to, in his words, “$200,000 or $250,000.” He noted that despite the potential for declines, long-term holders should not be deterred.
“Bitcoin is something you need to look at long-term. I don’t think anyone buying here at $90,000 is going to lose money. If they try to time this, maybe they’re lucky and the price goes to $70,000, but to me, Bitcoin could go up significantly this year, maybe $200,000 or $250,000. So I think $90,000 is still a good entry point,” said the Fundstrat CEO.
Lee’s comments came amid a broader discussion about market dynamics. The conversation began with a discussion of whether the recent stock market decline and the Fed’s decision to pause interest rate cuts will spook investors. Lee pointed to the upcoming inflation data as a key pivot, explaining: “We have been correcting for almost a month…I hope to see consumer price index Less than about 2.5%. I think in addition to profitability, this will bring confidence to the market. “
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He went on to highlight what he sees as short-term noise in inflation statistics, which are muddled by external events such as hurricanes and fires. “Last year’s hurricanes disrupted some of the quality of inflation because, for example, hotel bookings would increase… which would also disrupt used car prices,” Lee said, adding that once these anomalies disappear, overall inflation is likely to fall.
in discussion Fed policyLee maintained a balanced stance, saying, “I think the best case scenario is for the Fed to do a rate cut because the economy is strong enough and they are still dovish… they will go to neutral.” If they delay the cuts to 2026 and 2027 years, then the market will be supported for even longer. “He believes the market remains sensitive to policy uncertainty, especially under a new administration.
When asked if stocks were overvalued, Lee compared it to bond yields: “To me, even at 5% on the 10-year bond, it’s 20 times earnings on the 10-year bond…the median price-to-earnings ratio It’s 17 times. I think stocks are more valuable than bonds right now.”
At press time, BTC was trading at $95,618.
Featured image created using DALL.E, chart from TradingView.com
