Bitcoin could grow to $ 300,000 on the current bull market based on its historical models, according to Bobby Lee, co-founder and former chief executive of the BTCC cryptocurrency exchange.
However, he warned that the balloon would explode after the peak and the cryptocurrency could see declines for years.
“Bitcoin bull market cycles come every four years and this is a big one,” said Lee, who is currently the executive director of the Ballet cryptocurrency wallet. “I think it could really reach over $ 100,000 this summer.”
Two of these “mega bull market cycles” have taken place over the past eight years, CNBC told Squawk Box Asia on Monday, noting that the last was in 2017, when the price of bitcoin rose to nearly $ 20,000 by year ends at about $ 1,000 earlier that year.
It could drop quite a bit and then the bubble bursts. In the bitcoin cryptocurrency industry, we call it “bitcoin winter” and can last from two to three years.
Bobby Lee
founder and CEO, Ballet
With the entry of bitcoin in 2021 at about $ 30,000, Lee said that “even a value 10 times that” would bring the price of cryptocurrency to $ 300,000. He clarified that he was not sure if history would repeat itself.
Bitcoin has had a blockbuster until 2021 so far, the cryptocurrency surpassed several record levels this year and surpassed the $ 60,000 mark in early March. It was last traded at USD 57,660.24, according to Coin Metrics.
However, a “bitcoin winter” that could last for years could hit the cryptocurrency following its bull run, warns Lee.
“It could drop quite a bit and then the bubble will burst,” he said. “In the bitcoin cryptocurrency industry, we call it ‘bitcoin winter’ and it can take two to three years.”
Investors should be aware that the value of bitcoin could fall by up to 80% to 90% of its value from the all-time high, the entrepreneur said.
“Bitcoin is very volatile, but the rewards are risk-adjusted, I think,” Lee said.