Bitcoin might increase as much as $300,000 based on the historical patterns of the asset, says Bobby Lee, former CEO of cryptocurrency exchange BTCC.
However, he cautioned that this is a bubble that might burst after peaking and Bitcoin might see declines for years.
“Bitcoin cycles happen in four year periods and this one is big,” said Lee, who is currently the CEO of crypto wallet Ballet. “I believe it might go to $100,000 this summer.”
Two of these large bull cycles have happened over the past eight years, he told CNBC on Monday, pointing out that the most recent one was in 2017, when the price of bitcoin went to almost $20,000 by the year end from around $1,000 earlier that year.
With bitcoin going into 2021 at nearly $30,000, Lee said “even a 10x from that” would bring the price to $300,000. He cautioned that he was not positive that history would repeat.
Bitcoin has experienced a skyrocketing 2021, with the crypto breaking records, and reaching $60,000 in March. It last sold at $57,660.24.
Still, a “bitcoin depression” could last for years and might hit the crypto after its incredible bull run, warns Lee.
“It might go down by quite a lot and that’s when the bubble will burst,” he explained. “In the industry, we say this is the ‘bitcoin winter’ and it might last between two to three years.”
Investors should be careful because bitcoin’s price might plummet as much as 80% to 90% from its all-time high, the CEO said.