Bitcoin (BTC) has once again captured the market’s attention by breaking through the $111,000 level, a rise that has been accompanied by support from large investment institutions and the expansion of Bitcoin spot exchange-traded funds (ETFs).
However, Bitmain CEO Tom Lee has warned that the cryptocurrency could see a sharp price correction of up to 50% in the future.
The rise of institutional interest in Bitcoin, particularly through funds like iShares Trust (IBIT), has made it easier for traditional investors to enter the cryptocurrency market.
More transparent financial regulations have also paved the way for banks and asset managers to enter the crypto space, a development that could transform Bitcoin from a speculative asset to a more serious option in an investment portfolio.
Despite this optimism, Lee emphasizes that Bitcoin's high correlation with the stock market could lead to greater losses for cryptocurrencies when indices fall.
He predicts that in the event of a severe correction,
the price of Bitcoin could fall to the $55,000 range; however, he still does not rule out the possibility of it rising to $250,000 by the end of the year.
