|
Getting your Trinity Audio player ready...
|
- Tom Lee says Bitcoin could still drop 50% despite ETF and Wall Street support.
- Bitcoin’s market cycle may be shifting beyond the usual four-year pattern.
- Institutional adoption hasn’t eliminated volatility — only changed its form.
Despite growing belief that Bitcoin has “matured” thanks to Wall Street support and spot ETF inflows, Fundstrat co-founder and BitMine chair Tom Lee says sharp price drops are still on the table. Speaking with Anthony Pompliano this week, Lee warned that Bitcoin remains vulnerable to major volatility — even as mainstream investors increasingly view it as a stable, long-term asset.
“There will be 50% drawdowns,” Lee cautioned, emphasizing that Bitcoin’s behavior continues to mirror broader equity trends, only with greater intensity.
I sat down with @fundstrat to discuss whether AI is a bubble, why this may be the most hated stock market rally in history, and how misleading economic data shapes investor sentiment.
— Anthony Pompliano 🌪 (@APompliano) October 24, 2025
Tom also shares his latest views on Bitcoin, Ethereum, and why innovation in crypto markets is… pic.twitter.com/5GSKz5V1X0
“If the S&P Falls 20%, Bitcoin Could Drop 40–50%”
Lee compared Bitcoin’s performance directly to the stock market. “The S&P 500 has frequent 25% drawdowns,” he said. “So if the S&P is down 20, Bitcoin could be down 40.” This pattern, he added, has repeated several times over the past six years. Despite its growing legitimacy, Bitcoin still amplifies Wall Street’s swings, suggesting it’s far from insulated from macro risk.
Bitcoin’s Market Cycle May Be Changing
Interestingly, Lee believes Bitcoin could be entering a longer, more unpredictable cycle that deviates from its traditional four-year rhythm. While historical models projected a price peak around October 2025, Lee thinks the asset’s maturing investor base and institutional involvement might extend or reshape that timeline entirely.
Last month, Lee reiterated his bullish outlook — predicting Bitcoin could reach between $200,000 and $250,000 by year’s end. Yet he also acknowledged that such gains could easily be followed by a 50% correction, bringing the price back near $125,000.
Also Read: JPMorgan to Let Clients Use Bitcoin and Ether as Collateral for Loans by Year-End
Bitcoin Trades Above $111,000 Amid Slower Volume
At the time of writing, Bitcoin trades at $111,475, up 1.89% in the past 24 hours, with trading volume down nearly 30% to $51 billion, per CoinMarketCap.
Tom Lee’s comments serve as a reminder that Bitcoin’s evolution doesn’t erase its risk. Institutional adoption may offer more stability over time, but short-term investors should still brace for dramatic swings — especially when traditional markets stumble.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
