According to Bobby Lee, co-founder and former CEO of crypto exchange BTCC, Bitcoin could rise to $ 300,000 in the current bull market based on its historical patterns.
However, he warned that the bubble will burst after a spike and the cryptocurrency could fall for years to come.
“Bitcoin bull market cycles come every four years and this is a big one,” said Lee, who is currently the chief executive of crypto wallet Ballet. “I think it could really go up to over $ 100,000 this summer.”
Two of these “mega bull market cycles” have occurred in the past eight years, he told CNBC’s “Squawk Box Asia,” noting that the last was in 2017, when bitcoin’s price rose to nearly $ 20,000 each year. . end of about $ 1,000 earlier that year.
It can go down quite a bit and that’s when the bubble bursts. In the bitcoin crypto industry we call it ‘bitcoin winter’ and it can last two to three years.
Bobby Lee
founder and CEO, Ballet
With bitcoin moving in at around $ 30,000 in 2021, Lee said that “even 10x its value” would bring the cryptocurrency’s price to $ 300,000. He clarified that he was not sure if history would repeat itself.
Bitcoin has had a blockbuster so far in 2021, with the cryptocurrency breaking multiple record levels this year, crossing the $ 60,000 mark earlier in March. It last traded at $ 57,660.24, according to data from Coin Metrics.
Still, a “bitcoin winter” that could last for years could hit the cryptocurrency after its bull run, Lee warns.
“It can go down quite a bit and then the bubble bursts,” he said. “In the bitcoin crypto industry we call it ‘bitcoin winter’ and it can take two to three years.”
Investors should be aware that bitcoin’s value can drop as much as 80% to 90% of its value from its all-time high, the entrepreneur said.
“Bitcoin is very volatile, but the rewards I think are risk-adjusted,” Lee said.