Bitcoin Still Volatile Despite Rising Popularity
Bitcoin’s popularity keeps growing, especially with the launch of Bitcoin ETFs. However, Tom Lee — a well-known crypto analyst — warned that the digital currency remains highly volatile, even as more investors and institutions show interest.
In an interview with crypto entrepreneur Anthony Pompliano, Lee shared his views on why Bitcoin’s price could still experience major swings:
- Big price drops are still possible: Lee said he’s “certain there will be 50% drops”, meaning Bitcoin could still fall sharply from time to time.
- Tied to the stock market: He compared Bitcoin to traditional markets like the S&P 500, noting that if stocks fall by 20%, Bitcoin could drop by around 40%.
- Outside factors matter: Global economic issues, changing regulations, and investor moods can all cause Bitcoin’s price to fluctuate even more.
Even though institutional investors are now more active in crypto, Lee believes Bitcoin still behaves much like traditional markets — unpredictable and prone to big ups and downs.
Long-Term Optimism: A Wild Ride Ahead
Despite these warnings, Tom Lee remains optimistic about Bitcoin’s long-term future. He still expects the price to reach between $200,000 and $250,000 by the end of the year.
Even if Bitcoin were to fall 50% from those highs, Lee said it would still trade around $125,000, close to its previous record levels. In his view, such a correction would simply be part of Bitcoin’s normal market cycle.
Other analysts, like Peter Brandt, agree that Bitcoin could see major corrections similar to those in traditional markets, but that doesn’t necessarily spell long-term trouble.
If the crypto market continues to develop stronger infrastructure and clearer regulations, these dips could be temporary — followed by recovery and growth.
The Bigger Picture
In the end, Bitcoin remains a volatile yet promising asset. Its future depends on several key factors:
- Wider institutional adoption
- Evolving regulatory policies
- How well the market adapts to global economic changes
While short-term price drops may still occur, experts like Tom Lee believe Bitcoin could eventually stabilize and prove itself as a reliable long-term asset, even if the journey there remains bumpy.
