Bitcoin Could Be a Top Performer in 2025, But Here’s What Must Happen First – Tom Lee Explains
Is Now the Right Time to Buy Bitcoin? Tom Lee, co-founder of Fundstrat Global Advisors, said that Bitcoin could be one of the best-performing assets in 2025. We are seeing Bitcoin drop from its ATH price to $94k. So, let's see what Tom Lee's Bitcoin prediction has to say.
Tom Lee's prediction for Bitcoin
In a recent interview with CNBC, Lee explained that a 15% drop in Bitcoin's price from its peak is not unusual for such a volatile asset. He explains that this type of correction is common and follows global liquidity trends. Lee mentioned that we are still in the early stages of Bitcoin's half cycle.
However, Fundstrat's technical team predicts that Bitcoin could sink another $20,000 before starting to pull back.
Even Lee suggests that Bitcoin may drop to around $70,000 before it starts to recover. He believes that this is the key level at which Bitcoin can stabilize after the price decline.
Bitcoin as a long-term investment
However, he said that Bitcoin could go lower, possibly to $50,000, before resuming its uptrend.
For those considering buying bitcoin, Lee recommends taking a long-term approach. Trying to time the market may work for some, but it is not the most reliable strategy. It encourages 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 15 is an important date to watch. That's when the US Consumer Price Index (CPI) inflation data will be released, which can affect the price of Bitcoin. Additionally, the Federal Reserve's decision on interest rates later in the month will be important to the broader market, including Bitcoin.
Big profit in 2025
Despite the short-term challenges, Lee remains confident that Bitcoin will perform well in the long run. Analysts at institutions like VanEck and Bitwise also predict that Bitcoin could hit between $180,000 and $200,000 by the end of 2025. This would be a huge leap, especially if the US were to establish a Bitcoin reserve.
