Bitcoin Price Correction to as Low as $50K Possible but Bullish Long-Term Trajectory Intact: Expert
Fundstrat Head of Research Tom Lee asserts that Bitcoin could face a steeper decline but remains confident in its prospects for 2025.After rallying to a record high of $108,000 in early December 2024, Bitcoin's price has remained largely muted, save for a few wild oscillations between $90,000 and $100,000, as markets adjust to changing global liquidity expectations.Amid the uncertainty, one expert has disclosed that a further price decline may be in the cards but maintains that the asset's bullish long-term trajectory remains intact.Fundstrat's Tom Lee Remains Confident in BitcoinFundstrat Head of Research Tom Lee has asserted that Bitcoin could face a steeper decline but remains confident in its prospects for 2025.The analyst disclosed this on CNBC Television on Monday, January 13, when asked about Bitcoin's sharp decline to $91,000. Speaking to host Andrew Sorkin, he maintained that the recent correction was normal for the asset while adding that Fundstrat expected to see a possible line of defense at the $70,000 price point or $50,000 in the worst-case based on Fibonacci retracement levels.He further argued that all corrections presented a potential high-return opportunity, as he still expected Bitcoin to be among the best performers of 2025. At the same time, when asked if people should buy now or wait for the potential correction, he asserted that $90,000 remains a good entry as long as the outlook was long-term.Bitcoin could be significantly higher this year, maybe $200K or $250K. So I think $90K is still a good entry, he asserted, alluding to Fundstrat's 2025 Bitcoin price prediction.Inflation Not a Big Deal?In recent weeks, one of the main market concerns has been inflation and how its effect on the Federal Reserve's interest rate cut schedule could impact crypto assets.Unlike some analysts, Tom Lee argues that inflation is not yet a big deal, though he stresses that recent natural disasters like the wildfire in Los Angeles were likely to muddle the data. He further contended that the Federal Reserve's decision to spread rate cuts into the coming years could actually be positive, offering markets years of runway.In the short term, he noted that a slightly lower month-on-month (MoM) CPI inflation print and strong earnings would likely boost risk markets.In the hours following Lee's appearance on CNBC, the market has notably rebounded, with Bitcoin now trading around $96,400.
Text source: The Crypto Basic
