The unimaginable highs that Bitcoin has soared to could very well be followed by long spells of decline in the cryptocurrency’s value, co-founder and former CEO of crypto exchange BTCC Bobby Lee has said.
Based on the cryptocurrency’s historical patterns, the expert said that Bitcoin could soar to even $3,00,000 in the current bull market. Lee, however, was also quick to add that once the Bitcoin bubble bursts, it could see a decline for many years.
Explaining that the Bitcoin market had a pattern of operating in four-year bull cycles, he said, “I think it could go up to over $1,00,000 this summer”. The previous jumps in Bitcoin value were seen in 2013 and 2017. In 2017, the price of Bitcoin surged to nearly $20,000 by the end of the year, from nearly $1,000 at the start of the year.
With the cryptocurrency hitting $30,000 at the beginning of 2021, Lee noted that “even just a 10x value” would elevate the value of Bitcoin to $3,00,000.
Clarifying that he was not sure if history would repeat itself, he added that if this bull-market pattern has held, it is likely that a repeat of the 2009 lull would also occur.
“Bull-market cycles come and go. And after a bull-market peak, it can inevitably go down and that’s when the bubble bursts,” he said. “It (Bitcoin) could go down by quite a bit and that’s when the bubble bursts”.
Describing the fallout with the term “Bitcoin winter”, he said, “In the bitcoin crypto industry, we call it ‘Bitcoin winter’ and it can last from two to three years,”, adding, “Bitcoin is very volatile, but the rewards are risk-adjusted, I think”.
As of 2.45 pm (IST) on March 23, the value of Bitcoin was $54,418.86, according to CoinDesk. It had hit an all-time high of $61,556.59 on March 14 this year.