Bitcoin may drop to $70K

Despite predictions that Bitcoin (CRYPTO:BTC) could dip below $70,000, Fundstrat Capital's chief investment officer Tom Lee asserts that the cryptocurrency's current price of around $90,000 represents a favorable entry point for long-term investors.

“I don’t think anyone is going to lose money buying here at $90,000,” stated Lee in a January 13 interview with CNBC, expressing confidence in Bitcoin's resilience.

He acknowledged the possibility of a price drop to $70,000 but emphasised that such fluctuations are part of the normal volatility associated with the asset.

At the time of the interview, Bitcoin was trading at approximately $91,662.

Lee noted that while Bitcoin has seen a 15% decline from its all-time high, this correction is typical for a "hyper-volatile asset."

He believes that the current period presents a significant opportunity for investors as Bitcoin is entering a new halving cycle.

Lee outlined two scenarios for Bitcoin's future: one where it falls back to around $70,000 before rallying and another where it could drop to as low as $50,000.

However, he clarified that these levels would not establish new support but rather represent temporary touches before an upward movement.

Markus Thielen, founder of 10x Research, has a more cautious outlook, suggesting that persistent high inflation could pressure Bitcoin prices further.

He anticipates that if certain resistance levels are breached, Bitcoin could fall to approximately $69,000.

The market is closely watching January 15 for Consumer Price Index inflation data, which could influence Bitcoin and stock market dynamics.

Analysts have noted that recent price corrections are linked to fears regarding potential tightening of monetary policy by the U.S. Federal Reserve in 2025.

Despite these short-term challenges, asset managers like VanEck and Bitwise project Bitcoin could reach between $180,000 and $200,000 by the end of 2025 if favorable conditions persist.

At the time of reporting, the Bitcoin (BTC) price was $94,973.01.