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Veteran of the cryptocurrency sector and CEO of the payment firm Ballet, Bobby Lee, has cautioned that there is a significant likelihood of Bitcoin’s price dropping below $50,000.
In an interview with Bloomberg Television, he pointed out that the recent volatility in the crypto market is largely driven by leveraged trading in the spot, futures, and options markets. According to him, the current price movements are more related to speculative activities than to long-term investment flows.
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Lee believes that a decline in price to the $60,000 level could trigger a cascade of liquidations of long positions.
“There is a considerable chance that in the coming weeks, BTC will break the $60,000 mark and fall to support levels around $50,000–55,000. By the end of the year, the price could drop even lower,” he stated.
Lee estimates that in an extreme scenario, the decline could reach 80%, corresponding to levels around $20,000. Nevertheless, he remains optimistic in the long term and views Bitcoin as a store of value.
Previously, cryptocurrency skeptic Peter Schiff indicated that a drop in BTC below $50,000 could lead to further price reductions down to $20,000 and beyond.
