Crypto entrepreneur Bobby Lee has predicted Bitcoin will exhibit the same pattern as in the 2017 bull cycle. According to the entrepreneur, Bitcoin is destined to reach $300K in the current bull cycle before going into a three-year bear trend.
Since Bitcoin began its upsurge, no one has been certain where the top is. For most analysts, by the end of the year, bitcoin will be in the $100K region. But is this the top? And what comes next? For starters, Bobby Lee thinks that Bitcoin can easily multiply ten times from the levels it started the year. At the start of the year, Bitcoin was exchanging for $30,000 which has since doubled to reach $60,000. The former CEO of the crypto exchange BTCC was speaking to CNBC’s “Squawk Box Asia” where he explained that the price can end the current bull cycle at $300,000. This according to Bobby Lee will start with Bitcoin ending this summer above $100,000.
His prediction aligns with that of popular analyst PlanB. Famous for his Stock to flow model, which has been accurate thus far, the analyst has called the $100K target by the end of the year as highly conservative. A revised chart by him has shown that Bitcoin could end the year above $288K.
December close: $28,992
January close: $33,141
February close: $45,240
March 17 price: $55,000
We are only 3.5 months into the #bitcoin bull market. IMO BTC will not stop at $100K and will continue to S2FX $288K average price level (ATH will be higher). pic.twitter.com/skS6a7pepu— PlanB (@100trillionUSD) March 17, 2021
Both predictions look feasible after Bitcoin’s first-quarter performance. The arguments are further strengthened by developments around the space. Some of this is the current institutional interest in digital asset from the likes of Tesla to Asian companies like Meitu. There is also excitement around the first Bitcoin ETF being approved by the SEC before the end of the year. As we reported, the SEC has already acknowledged receiving the VanEck filing and has a few days to respond. Other filings include one from former White House Communications Director Anthony Scarramucci’s firm SkyBridge Capital.
Bobby Lee: Three-Year Winter After the Top
Once Bitcoin has topped, it’s inevitable to go into a correction. Historically, Bitcoin has proven that it does not move in a straight line. Bobby Lee explained that the current cycle is a “mega bull market cycles” which comes every four years. The last was in 2017 when Bitcoin came from under $1,000 at the start of the year to end it above $20,000. After topping at this, the bubble burst, and Bitcoin winter followed. This saw Bitcoin reach a low of $3,000, a drop of over 80%. Bob Lee believes that the same pattern could repeat once Bitcoin reached $300,000. He said:
“It could go down by quite a bit and that’s when the bubble bursts…In the bitcoin crypto industry, we call it ‘bitcoin winter’ and it can last from two to three years.”
Though Bitcoin is known to follow some historic patterns, it similarly famous for adjusting. The current cycle is for example like none other given there has never been institutional demand. Similarly, Bitcoin ETFs were not a factor in previous cycles. While the drop after a high is inevitable, it unlikely that we see another wipeout of the same magnitude witnessed in previous bull market cycles. Similarly, it is unlikely to stay in a bear market for two to three years as previously witnessed.
Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.
