Bitcoin Could Be a Top Performer in 2025, But Here’s What Needs to Happen First – Tom Lee Explains
Is now the right time to buy Bitcoin? Tom Lee, co-founder of Fundstrat Global Advisors, said Bitcoin could soon become one of the best-performing assets in 2025. But there’s a problem, it needs to fall further before it can really soar. As the price of Bitcoin has fallen from ATH to the current $94,000. So, let’s see what Tom Lee’s Bitcoin predictions have to say.
Tom Lee’s predictions for Bitcoin
in the most recent Interviewed by CNBCLee explained that for such a volatile asset, it is not unusual for Bitcoin prices to drop 15% from their peak. He explained that this type of adjustment is common and follows global liquidity trends. Lee also mentioned that we are still in the early stages of the Bitcoin halving cycle, which is a factor that has historically affected Bitcoin prices.
However, Fundstrat’s technical team predicts that Bitcoin could drop another $20,000 before starting to rebound.
Even Lee said that Bitcoin could fall to around $70,000 before starting to recover. He believes this is a key level where Bitcoin prices can stabilize after falling.
Bitcoin as a long-term investment
However, he further mentioned that Bitcoin could drop to lower levels, possibly as low as $50,000, before starting an uptrend again.
For those considering buying Bitcoin, Lee recommends take a long term approach. He believes that trying to time the market may work for some people, but it is not the safest strategy. He encouraged investors to view Bitcoin as a long-term investment with strong growth potential in the coming years.
Key dates to watch for Bitcoin
Lee also pointed out that January 15th is an important day worthy of attention. At that time the United States Consumer Price Index (CPI) Inflation data will be released, which may affect the price of Bitcoin. Additionally, the Federal Reserve’s interest rate decision later this month will be important for the broader market, including Bitcoin.
Big gains in 2025
Despite the short-term challenges, Lee remains confident in Bitcoin’s long-term performance. Institutional Analyst VanEck and Bitwise are also optimistic, predicting that Bitcoin could reach $180,000 to $200,000 by the end of 2025. This would be a huge leap, especially if the United States builds a Bitcoin reserve.