We could soon see bitcoin surge into the six-figures, but a crypto expert says the bubble will burst for the digital coin and a “bitcoin winter” will follow. Here’s what to expect.
Bitcoin has had a wild year so far in 2021.
The world’s largest cryptocurrency has gained nearly 78% to $52,236.35 so far this year, but is also down 15% from its record high set earlier this month.
Bitcoin has been stuck in a downtrend since hitting an all-time high on March 13 of $61,556.59, and is down nearly 10% since the start of this week.
But volatility is nothing new to bitcoin, and one crypto expert says the digital coin could soon see a wild ride into the six figures.
Bobby Lee, co-founder and former CEO of crypto exchange BTCC and current CEO of crypto wallet Ballet, says the coin could surge to $300,000. When the bubble bursts, however, bitcoin is likely to see declines for years.
“Bitcoin bull market cycles come every four years and this is a big one,” Lee said. “I think it could really go up to over $100,000 this summer.”
Lee noted that there have been two “mega bull market cycles” in the last few years, the one we’re currently in and the one from back in 2017 when bitcoin jumped from $1,000 per coin early in the year to $20,000 by Christmas.
In the current cycle, bitcoin started 2021 at around $30,000, and Lee said that “even just a 10x value from that” would see the cryptocurrency to $300,000.
But with history likely to repeat itself, Lee says a “bitcoin winter” could drag on for years.
Bitcoin “could go down by quite a bit and that’s when the bubble bursts,” Lee continued. “In the bitcoin crypto industry, we call it ‘bitcoin winter’ and it can last from two to three years.”
And in this winter, Lee notes, could see bitcoin see a decline of 80% to 90% from its peak.
“Bitcoin is very volatile,” Lee said, “but the rewards are risk-adjusted, I think.”