Tom Lee Forecasts Bitcoin Could Dip To $50K, But Maintains Long-Term Target Of $250K Amid Market Volatility

Wall Street strategist Tom Lee suggests Bitcoin BTC/USD could retreat significantly from recent highs, potentially testing support levels at $70,000 or even the $50,000 range, while maintaining a long-term bullish stance targeting $250,000.

What Happened: Speaking on CNBC’s ‘Squawk Box’, Lee, who serves as Fundstrat Capital‘s Chief Investment Officer, characterized the cryptocurrency’s recent 15% decline from all-time highs as a “normal correction” for a volatile asset. Bitcoin currently trades near $95,000, down about 6.6% over the past month.

The forecast comes amid broader market uncertainty, with U.S. stocks experiencing a 23-day correction period and persistent inflation concerns. Lee emphasized that Bitcoin’s movements largely track global liquidity conditions, noting the market is still early in its halving cycle.

Crypto skeptic Peter Schiff offered a more bearish perspective on social media platform X, drawing parallels between current Bitcoin enthusiasm and Ethereum’s ETH/USD previous peak.

“There was lots of hype around Ethereum in 2021, just as there’s a lot of hype around Bitcoin now,” Schiff wrote, highlighting Ethereum’s 40% decline from its November 2021 high of nearly $5,000 to current levels below $3,000.

In Nov. 2021 #Ethereum almost hit $5K. Today the price is under $3K, a 40% drop in over three years. There was lots of hype around Ethereum in 2021, just as there's a lot of hype around #Bitcoin now. A similar drop in Bitcoin would wipe out almost all of $MSTR's unrealized gains.

— Peter Schiff (@PeterSchiff) January 13, 2025

See Also: Bitcoin, Ethereum, XRP, Dogecoin Reverse ‘Red Monday’ On Bullish Trump News

Why It Matters: Despite short-term volatility concerns, Lee maintains that Bitcoin’s current price around $95,000 represents an attractive entry point for long-term investors. “If you’re trying to time it, maybe you’ll get lucky and it will reach $70,000. But to me, Bitcoin could go to $250,000, so $90,000 is still a good entry point,” Lee said.

The cryptocurrency market’s movements come as the Federal Reserve signals a pause in expected rate cuts, contributing to broader market uncertainty. Lee suggests these macro factors, combined with temporary distortions from natural disasters affecting inflation data, could influence near-term price action across financial markets.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.