Tom Lee Dusts Off Failed 2025 Bitcoin Prediction, Sees BTC Hitting $250K In 2026
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Fundstrat investment chief Tom Lee is bringing back his Bitcoin price prediction from last year.
Bitcoin could reach between $200,000 and $250,000 this year, Lee told CNBC on Monday, dusting off his failed call for the asset last year. The asset reached a record price of about $126,000 last year before crashing to end the year near $88,000.
Lee said he was optimistic about Bitcoin this year following the Oct. 10 crash. He said the crash wiped out excess leverage, which could allow for a healthy rally. He also cited tailwinds such as institutional adoption and government support.
Don't Miss:
-
Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Invest Now at Just $0.85 a Share
-
Sam Altman Says AI Will Transform the Economy — This Platform Lets Investors Back Private Tech Early
Additionally, he said Bitcoin is likely to benefit from gold and silver’s rally last year, noting that gold rallies have typically led Bitcoin rallies.
At the same time, Lee said if Bitcoin hit the $250,000 target, it would confirm the end of the so-called four-year cycle.
The four-year cycle refers to a historical pattern that has seen Bitcoin surge to new highs and crash once every four years. The cycle is associated with "the halvening," a programmed event that reduces the supply of new Bitcoin roughly every four years. With the last halvening in 2024, the pattern suggests that last year was Bitcoin’s up year and this year would see the beginning of an extended crash.
Trending: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the PlatformBefore the Raise Ends 1/19
However, like Lee, several analysts have suggested that the four-year cycle is likely over, citing changes in Bitcoin’s market structure. These changes include the launch of spot exchange-traded funds and the proliferation of treasury companies.
Still, this year is not going to be without hurdles for Bitcoin and the broader market, according to Lee.
"Compressed in one year will be joy, depression and rally," he told CNBC, referring to the broader market.
See Also: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
According to Lee, a 15% to 20% correction in the S&P 500 is likely in the second half of the year, though he sees the index surging to $7,700. He said the volatility would likely result from uncertainty surrounding new Federal Reserve leadership.
Content Original Link:
" target="_blank">
