Bitcoin can reach $ 300,000 in the current bull market based on its historical standards, according to Bobby Lee, co-founder and former CEO of crypto exchange BTCC.
However, he warned that the bubble will burst after reaching its peak and that the cryptocurrency could fall for years.
“Bitcoin bullish cycles happen every four years and this is a big problem,” said Lee, who is currently the chief executive of Crypto Wallet Ballet. “I think it could actually reach over $ 100,000 this summer.”
Two of these “mega bullish market cycles” have occurred in the past eight years, he told CNBC’s “Squawk Box Asia” on Monday, noting that the last one was in 2017, when bitcoin prices rose to nearly $ 20,000. per year close to about $ 1,000 at the beginning of that year.
It can shrink a little and that’s where the bubble bursts. In the bitcoin crypto industry, we call it a ‘bitcoin winter’ and can last for two to three years.
Bobby Lee
founder and CEO, Ballet
With bitcoin entering 2021 for around $ 30,000, Lee said that “even 10 times that amount” would bring the price of the cryptocurrency to $ 300,000. He clarified that he was not sure whether history would repeat itself.
Bitcoin has had a blockbuster in 2021 so far, with the cryptocurrency breaking several record levels this year and surpassing the $ 60,000 mark in early March. It was 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 it rose, warns Lee.
“It may fall a little bit and that is where the bubble bursts,” he said. “In the bitcoin crypto industry, we call it a ‘bitcoin winter’ and it can last for two to three years.”
Investors should be aware that the value of bitcoin can fall from 80% to 90% of its value since its all-time peak, the businessman said.
“Bitcoin is very volatile, but the rewards are risk-adjusted, I think,” said Lee.