Bitcoin could soar as excessive as $300,000 within the present bull market based mostly on its historic patterns, in response to Bobby Lee, co-founder and former CEO of crypto trade BTCC.
However, he warned that the bubble will burst after peaking and the cryptocurrency could see declines for years.
“Bitcoin bull market cycles come every four years and this is a big one,” mentioned Lee, who’s at the moment the chief government of crypto pockets Ballet. “I think it could really go up to over $100,000 this summer.”
Two of those “mega bull market cycles” have occurred during the last eight years, he informed CNBC’s “Squawk Box Asia” on Monday, declaring that the final one was in 2017, when the worth of bitcoin surged to almost $20,000 by the 12 months finish from about $1,000 earlier that 12 months.
With bitcoin coming into 2021 at round $30,000, Lee mentioned “even just a 10x value from that” would deliver the worth of the cryptocurrency to $300,000. He clarified that he was unsure if historical past would repeat itself.
Bitcoin has had a blockbuster 2021 to date, with the cryptocurrency breaking a number of report ranges this 12 months, and surpassing the $60,000 mark earlier in March. It final traded at $57,660.24, in response to knowledge from Coin Metrics.
Still, a “bitcoin winter” that could final for years may hit the crypto foreign money following its bull run, warns Lee.
“It could go down by quite a bit and that’s when the bubble bursts,” he mentioned. “In the bitcoin crypto industry, we call it ‘bitcoin winter’ and it can last from two to three years.”
Investors needs to be conscious that bitcoin’s worth could fall as a lot as 80% to 90% of its worth from the all-time peak, the entrepreneur mentioned.
“Bitcoin is very volatile, but the rewards are risk-adjusted, I think,” Lee mentioned.