Tom Lee, co-founder of Fundstrat, has lowered his previously bullish Bitcoin price target, informing CNBC that the cryptocurrency might conclude 2025 below his earlier forecast of $250,000. Lee suggested that Bitcoin could instead retest its October peak, which was near $125,000, before the current year concludes.
Market Dynamics and Long-Term Outlook
This adjustment comes as Bitcoin continues to face short-term pressure, attributed to a slowdown in institutional flows observed since November. Despite these pressures, Lee maintains that Bitcoin's long-term structure remains robust. He highlighted a historical pattern where most of the annual gains often materialize within a small cluster of trading days. Current Bitcoin ETF inflows and ongoing miner accumulation lend support to this perspective, indicating sustained demand even with weaker momentum indicators.
Future Expectations and Influencing Factors
Fundstrat anticipates further volatility but identifies potential upside if macroeconomic conditions stabilize, particularly with U.S. interest rate expectations trending lower. Lee indicated that future guidance will be contingent on Bitcoin's reaction to December trading volumes, a month historically associated with stronger performance.