Bobby Lee, co-founder and former CEO of Cryptocurrency Exchange BTCC, has predicted that the price of Bitcoin could soar to $ 300,000 in this bull cycle, but warned that if a bubble forms and, the price of BTC could decline for years bursts.
During CNBC’s “Squawk Box Asia,” Lee said that the Bitcoin bull cycles happen “every four years,” presumably suggesting that the price of Bitcoin rises after each Bitcoin halving event. Bitcoin halves reduce the number of BTCs included in each block’s basic coin reward, effectively halving Bitcoin’s inflation.
The Bitcoin bull market cycles happen every four years and this is a big one. I think it could really cost over $ 100,000 this summer.
The price of BTC has historically increased after every halving event as demand continued to grow and supply was abruptly cut in half. Per Lee, two of these bull cycles occurred in the past eight years, one in 2017. That year, Bitcoin price rose from around $ 1,000 to an all-time high of $ 20,000.
However, in 2018, the price of BTC fell to a low of $ 3,200 over a year-long bear market. Lee noted that this is known in the industry as “Bitcoin winter” and can take “two to three years”. If the crypto bubble bursts after an extended bull run, it could “sink a lot”.
After Bitcoin started at $ 30,000 this year, Lee implied that “only 10 times the value of it” would bring it to $ 300,000 this cycle. While warning he wasn’t sure history would repeat itself, he claimed Bitcoin price was “very volatile,” but “the rewards are risk-adjusted, I think.”
Bitcoin is trading at $ 57,670 at the time of going to press, 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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