- Bitcoin might surge to $300,000, however the bubble is prone to pop dramatically, Bobby Lee mentioned.
- The founding father of the BTCC change mentioned the value of bitcoin might fall as a lot as 90% from its peak.
- Bitcoin has risen by about 800% in a yr, to roughly $58,000 within the newest bull-market cycle.
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The bitcoin price might surge as excessive as $300,000 within the newest bull-market rally however then plunge 90% right into a “winter” lasting years, the founding father of the cryptocurrency change BTCC mentioned.
Bobby Lee told CNBC’s “Squawk Box Asia” on Monday that 2021 is a bull marketplace for bitcoin, of the type that comes round each three or 4 years. Lee, who runs the crypto pockets app Ballet, mentioned 2013 and 2017 had been additionally bull-market years wherein the bitcoin value elevated by 10 or 20 instances.
He predicted that the value of bitcoin would hit $100,000 by the summer season and “doubtlessly” $300,000 by the tip of the yr “if historical past performs itself out once more.”
Nonetheless, Lee mentioned that “bull-market cycles come and go,” including that “after a bull-market peak inevitably it might go down by fairly a bit, and that is when the bubble bursts.”
Lee mentioned bitcoin might enter a “winter” the place the value stays low for 2 or three years. “So after it peaks out, whether or not it is $200,000, $100,000, or $300,000, folks must be conscious that it might fall as a lot as 80% to 90% of its worth from the all-time peak,” he mentioned.
Lee cofounded BTCC in 2011, making it one of many oldest cryptocurrency exchanges.
The bitcoin value has roughly doubled this yr, to about $58,100 on Monday, down from a excessive of near $62,000 every week in the past. It’s up by nearly 800% from final March, when it tumbled because the coronavirus outbreak began to batter the worldwide financial system.
Advocates say the world’s greatest cryptocurrency by market worth will proceed its exceptional run, as institutional investors increasingly become involved. In addition they argue that bitcoin can act as a hedge in opposition to inflation, which many traders anticipate to rise.
However critics say bitcoin’s massive volatility means its institutional adoption shall be restricted. Many argue that it’s in a bubble pushed by enormous quantities of stimulus and is ready for a value crash much like after 2017, when bitcoin plunged beneath $4,000 from about $20,000 in simply over a yr.
“I do not know if historical past will repeat itself, however what we do know is that bitcoin bull-market cycles come each 4 years, and this can be a huge one,” Lee mentioned.