Bitcoin prices could soon reach $ 300,000 – but then sink into a dark time, if history is any criterion, according to one expert.
Bobby Lee, co-founder and vice president of crypto exchange BTCC, told CNBC Asia in an interview Monday that BTCUSD bitcoin,
tends to work in four-year bull circles, with big jumpers in 2013, 2017 and the latest boost this year representing the latest uptrend for the world’s most obvious crypto.
However, if the pattern is true, it is likely that a period of speculation for the fund created in 2009 that may last two to three years will continue, “if history plays out again, ”Lee told CNBC, saying he’s not sure“ history repeats itself ”but notes that the nascent climb since its inception has so far set a pattern that is expected to follow.
“I don’t know if history will repeat itself but what we do know is that bitcoin bull market cycles come every four years and this is huge,” Lee said.
Lee predicted that bitcoin could hit $ 100,000 by the end of the summer and possibly a $ 300,000 rub by the end of 2021.
After a potential 10x rise with bitcoin at the end of the year, it is likely to bounce back down to Earth, if it continues to move in the other two past bull levels.
To be sure, the bullish trading patterns of bitcoin over the past decade do not offer a statistically strong sample size, but it may be something that upbeat investors are sticking to. , at least, until values decline.
“Bull market bikes come and go and after a bull market peak, inevitably it can go down a lot and that’s when the bubble wakes up,” Lee said.
Bitcoin is up 96% so far in 2021, compared to a gain of nearly 7% so far for the Dow Jones industrial average DJIA,
5% increase for the S&P 500 SPX index,
4% gain for Nasdaq Composite Index COMP index,
and a decline of over 8% for GC00 gold,
FactSet data display.
“In the crypto industry, we call it the bitcoin winter and it can last for two or three years. So, once it reaches out … people should be aware that it could fall as much as 80% to 90% of its value from the full-time peak, ”he explained.
At the last survey, bitcoin was trading at $ 56,728, off less than 1% on Monday and not far from its recent high at $ 61,556.59, according to CoinDesk.