Bitcoin (BTC) Could Retreat Significantly from Recent Highs, Targeting Support Levels at $70,000 or Even the $50,000 Range: Fundstrat's Tom Lee

Wall Street strategist Tom Lee suggests Bitcoin BTC/USD could retreat significantly from recent highs, potentially testing support levels at $70,000 or even the

Bitcoin Price Today: BTC Falls Below $95K Amid Broader Market Uncertainty

Bitcoin BTC/USD fell below the $95,000 level on Monday evening, as the world’s largest cryptocurrency continued to experience a 15% decline from recent all-time highs.

Bitcoin’s recent downturn comes amid a broader 23-day correction period for U.S. stocks, which experienced their worst first half since 1970. The downturn follows a period of elevated inflation, which is now persisting for longer than initially anticipated by markets.

Bitcoin’s movements have largely tracked global liquidity conditions, which are still early in their halving cycle, according to Fundstrat Capital’s Chief Investment Officer Tom Lee. Speaking on CNBC’s ‘Squawk Box’, Lee offered his perspective on Bitcoin’s near-term price trajectory.

“This is normal for a volatile asset. Maybe it will test $70,000, and if you're trying to time it, maybe you'll get lucky. But to me, Bitcoin could go to $250,000, so $90,000 is still a good entry point for the long term.”

Bitcoin’s price movements also come as the Federal Reserve signaled a pause in expected rate cuts, which had been contributing to broader market strength throughout 2023.

This macro backdrop, combined with temporary distortions from natural disasters affecting inflation data, could be influencing near-term price action across financial markets, according to Lee.

Crypto skeptic and Euro Pacific Capital CEO Peter Schiff drew parallels between current enthusiasm around Bitcoin and a previous peak in interest for another top cryptocurrency.

“There was lots of hype around Ethereum in 2021, just as there's a lot of hype around Bitcoin now,” Schiff wrote on social media platform X, highlighting Ethereum’s 40% decline from its November 2021 high.

In Nov. 2021 #Ethereum almost hit $5K. Today the price is under $3K, a 40% drop in over three years. There was lots of hype around Ethereum in 2021, just as there's a lot of hype around #Bitcoin now. A similar drop in Bitcoin would wipe out almost all of $MSTR's unrealized gains.

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What Else? Schiff, who is known for his bearish outlook on cryptocurrencies, often highlights instances of realized losses in the digital asset markets.

Highlighting the performance of major altcoins, Schiff recently noted XRP’s 95% decline from all-time highs and Dogecoin DOGE/USD’s 90% downturn. Both XRP and Dogecoin experienced significant rallies in 2021, which were followed by extended periods of realized losses.

Despite Schiff’s bearish outlook and short-term volatility concerns, Lee maintained a bullish stance on Bitcoin’s long-term price trajectory, targeting levels of $250,000. “If you're trying to time it, maybe you’ll get lucky and it will reach $70,000. But to me, Bitcoin could go to $250,000, so $90,000 is still a good entry point,” he said.