Bitcoin could be the best performer in 2025, but here’s what needs to happen first – Tom Lee explains

Is now a good time to buy Bitcoin? Bitcoin could soon become one of the best-performing assets in 2025, says Tom Lee, co-founder of Fundstrat Global Advisors. But there’s a catch: it has to fall further before it can truly rise. As Bitcoin is already witnessing a price drop from ATH to $94K currently. So, let’s see what Tom Lee’s Bitcoin forecast says.

Tom Lee Bitcoin Predictions

Recently Interview with CNBCLee explained that a 15% decline in Bitcoin’s price from its peak is not unusual for such a volatile asset. He explains that this type of correction is common and follows global liquidity trends. Lee also mentioned that we are still in the early stages of the Bitcoin halving, a factor that has historically influenced the price of Bitcoin.

However, Fundstrat’s technical team expects Bitcoin to drop another $20,000 before it starts to rebound.

Even Lee suggests that Bitcoin may drop to around $70,000 before it starts to recover. He believes this is the key level where Bitcoin can stabilize after a price decline.

Bitcoin as a long-term investment

However, he also mentions that Bitcoin may drop to a lower level, perhaps to $50,000, before it begins its upward trend again.

For those who are thinking about buying Bitcoin, Lee recommends it Take a long-term approach. He points out that trying to time the market may work for some, but it’s not the safest strategy. It encourages investors to view Bitcoin as a long-term investment, with strong growth potential in the coming years.

Key dates to watch for Bitcoin

Lee also points out that January 15 is a crucial date to keep an eye on. That’s when the United States Consumer Price Index (CPI) Inflation data will be released, which may affect the price of Bitcoin. Additionally, the Federal Reserve’s interest rate decisions later in the month will be important for the broader market, including Bitcoin.

Big gains in 2025

Despite the short-term challenges, Lee remains confident that Bitcoin will perform well in the long term. Institutional analysts VanEck and Bitwise are also optimistic, predicting that Bitcoin will reach between $180,000 and $200,000 by the end of 2025. This would be a huge jump, especially if the US creates a Bitcoin reserve.