Bitcoin could rise to $ 300,000 in the current bull market based on its historical patterns, according to Bobby Lee, co-founder and former CEO of the BTCC crypto exchange.
However, he warned that the bubble would burst after it peaked and that the cryptocurrency could see declines for years.
“The bull market cycles of Bitcoin come every four years, and that’s a big cycle,” said Lee, who is currently CEO of Crypto Ballet Portfolio. “I think it could actually go up to over $ 100,000 this summer.”
There have been two “mega bull market cycles” over the past eight years, he told “Squawk Box Asia” on CNBC on Monday, noting that the last of them was in 2017, when the bitcoin price rose to nearly $ 20,000 by the year. . From about $ 1,000 earlier that year.
With Bitcoin entering about $ 30,000 in 2021, he told me that “even just 10 times more than that” would raise the price of the cryptocurrency to $ 300,000. He said he was not sure if history would repeat itself.
Bitcoin has been a hit in 2021 so far, with the cryptocurrency breaking multiple records this year. It topped $ 60,000 earlier in March. It last traded at $ 57,660.24, according to data from Coin Metrics.
However, Lee warns that a potentially years-long “bitcoin winter” could hit the cryptocurrency after its bullish rally.
“It can go down a little bit and that’s when the bubble burst,” he said. “In the bitcoin crypto industry, we call it ‘Bitcoin Winter’ and it can last from two to three years.”
The entrepreneur said that investors should be aware that Bitcoin’s value can drop 80% to 90% of its value from all-time highs.
He told me, “Bitcoin is very volatile, but the rewards are adjusted for risk, I think.”