Bobby Lee, the co-founder and former CEO of cryptocurrency exchange BTCC, has predicted the price of bitcoin could surge to $300,000 this bull cycle, but warned that if a bubble forms and bursts it could see BTC’s price decline for years.
Speaking during CNBC’s “Squawk Box Asia,” Lee said that bitcoin bull cycles “come every four years,” presumably suggesting that after each bitcoin halving event the price of bitcoin surges. Bitcoin halvings reduce the number of BTC included in each block’s coinbase reward, effectively cutting Bitcoin’s inflation in half.
Bitcoin bull market cycles come every four years and this is a big one. I think it could really go up to over $100,000 this summer.
The price of BTC has historically moved up after each halving event, as demand kept on growing while supply was abruptly cut in half. Per Lee, two of these bull cycles occurred over the last eight years, with one occurring in 2017. That year, bitcoin’s price went from around $1,000 to a $20,000 all-time high.
In 2018, however, the price of BTC dropped to a $3,200 low over a year-long bear market. Lee noted that in the industry this is called a “bitcoin winter” and can last from “two to three years.” When the crypto bubble bursts after an extensive bull run, he “could go down by quite a bit.”
After bitcoin started this year at $30,000, Lee implied “even just a 10x value from that” would bring it to $300,000 this cycle. While he warned he was not sure history would repeat itself, he claimed bitcoin’s price is “very volatile” but “the rewards are risk-adjusted, I think.”
Bitcoin is, at press time, trading at $57,670 according to CryptoCompare data. Last week it hit a new all-time high above $61,800 before correcting and falling below $60,000.
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