Bitcoin could rise to $ 300,000 in the current bullish market according to its historical patterns, according to Bobby Lee, co-founder and former CEO of cryptocurrency exchange BTCC.
However, he warned that the bubble will burst after its peak and that the cryptocurrency could see a decline for years.
“Bitcoin’s bullish market cycles come every four years and that’s important,” said Lee, who is currently the chief executive of the Ballet cryptocurrency portfolio. “I think it could go over $ 100,000 this summer.”
Two of these “mega bullish market cycles” have occurred over the past eight years, he told CNBC’s “Squawk Box Asia” on Monday, noting that the last one was in 2017, when the price of the bitcoin rose to about $ 20,000 a year. end of about $ 1,000 earlier that year.
It could go down quite a bit and that’s when the bubble bursts. In the bitcoin cryptography industry, we call it “winter bitcoin” and it can last from two to three years.
Bobby Lee
founder and CEO of Ballet
With bitcoin entering $ 20,000 in 2021, Lee said “even just a value ten times that” would bring the price of the cryptocurrency to $ 300,000. He clarified that he was not sure if history would repeat itself.
Bitcoin has had an overproduction in 2021 so far, with the cryptocurrency hitting several record levels this year and surpassing the previous $ 60,000 in March. According to Coin Metrics data, it was last changed to $ 57,660.24.
Still, a “bitcoin winter” that could last for years could affect the cryptocurrency after its run, Lee warns.
“It could go down quite a bit and that’s when the bubble bursts,” he said. “In the bitcoin cryptography industry, we call it ‘winter bitcoin’ and it can last two to three years.”
Investors should be aware that the value of Bitcoin could fall by as much as 80% to 90% of its value from an all-time high, the entrepreneur said.
“Bitcoin is very volatile, but I think the benefits are risk-adjusted,” Lee said.