Today on CNBC’s Squawk Box, Tom Lee from Fundstrat Global Advisors discusses Bitcoin’s future. He suggested the market might dip before Bitcoin’s next big rise.
Lee noted, “Bitcoin is down about 15% from its low average. This is normal for such a volatile asset, especially with current global liquidity.” He added, “We are still early in the halving cycle.” Lee also mentioned that swings in digital asset values are typical in the crypto market.
A decline to $70,000 is likely, but Lee did not rule out a deeper selloff. It could easily go down to the $50,000s.” But that’s not a new level. That’s where it touches before it begins to rally,” he noted.
Bitcoin’s Path: Dip To $50,000s, Then Surge
Lee painted a scenario where Bitcoin’s price movement could be twofold: short-term selloff to the $50,000s, then a sustained recovery that could bring its value back to $200,000 or even $250,000. “It is the kind of thing you need to be patient on if you want to make good profits from.” I do not think anyone is getting a raw deal by investing here at $90,000,” he said after asking everyone to look at the big picture.
During a broader talk, Lee commented on financial market topics such as inflation, the Fed’s stance, and equity valuations. Regarding current market trends, he noted tension created by the expectations of the Federal Reserve’s rate cut and inflation data releases.
“We have been correcting now for nearly a month.” “Sure, I want CPI to come in below 2.5%. That would give markets confidence on top of earnings,” quipped Lee.
He also pointed out how global phenomena like hurricanes and natural disasters have distorted inflation measurements, influencing the indicators, including hotels and used cars.
Lee has been moderate and optimistic in his advocacy for a careful approach to Federal Reserve policy. “I like it best when the” Fed makes one cut because the economy is that robust, and they are still dovish.
And if they move these cuts to 2026 or 2027, ‘that’s a longer time frame to underpin markets,’ he pointed out. Lee explained further that markets are still reactive to policy risks, especially if a new administration is at the helm of the country’s affairs.
In the debate on equity valuations, Lee said that stocks remain cheaper than bonds even at higher yields on their part. Bond yield for 10-year notes hit 1.5%, and you’re saying it can get to 5% originally a 20 PE multiple on bond. The actual median estimate of the PE for stocks is fifteen and seven hundred of a PE.
They are much better value right now than stocks,” he said. For long-term Bitcoin investors, Lee’s predictions are more of a plus than a minus. He was confident that the current prices of around $90,000 still offer value points of entry given the upside in Bitcoin. “If someone tries to time this, they might get lucky and see $70,000. But Bitcoin could be significantly higher this year, he concluded.