Crypto Market Outlook: Fundstrat’s Tom Lee Sees Potential Market Bottom

This week’s U.S. job data and Bitcoin’s recent 10% dip may be crucial in shaping a market bottom, according to Fundstrat’s head of research, Tom Lee. Despite the market drawdown, Lee remains optimistic about Bitcoin’s long-term prospects, predicting that it will end 2025 higher than $150,000.

Last weekend, crypto markets experienced a brief surge after President Donald Trump hinted at a U.S. crypto reserve featuring five of the top digital assets by market cap, including Bitcoin and Ethereum. Investors deployed over $330 billion across cryptocurrencies in a matter of hours, only to see outflows surpass $600 billion 24 hours later, erasing all the gains from Trump’s announcement.

Market Bottom and Short-Term Volatility

Speaking with CNBC, Lee predicted that a Bitcoin market bottom may form as early as this week. A market bottom is a level at which an asset typically bounces from, serving as a springboard for upward momentum. Although Lee’s forecast adopted a long-term view, he expects short-term volatility to contribute to finding a bottom.

This cyclical bottoming phase could see Bitcoin drop to $62,000 in March, according to Lee. A 24% decline from current prices would mark one of the largest drawdowns in the asset’s history, setting a four-month low.

Risk-Off Sentiment and Economic Uncertainty

Some analysts agree that Bitcoin and the broader crypto markets may suffer from risk-off sentiment due to economic uncertainty. Trade wars have broken out as President Trump issued tariffs against several nation-states, including Canada, Mexico, and China.

However, Lee believes that this week’s U.S. job data could alleviate fears and spark investor confidence. Historically, Bitcoin has closed March with losses six times and turned gains five times between 2013 and 2024, making the chances of a decline nearly 50/50.

Lee also noted that Bitcoin saw a modest uptick after last week’s Core PCE data before dipping again, suggesting that positive economic data could provide a cushion for the asset.

“This week’s U.S. job data could cushion fears and spark investor confidence.”

For investors looking to navigate the crypto market, here are some key tips:

  • Stay informed about economic data and its potential impact on the crypto market.
  • Consider diversifying your portfolio to minimize risk.
  • Keep a long-term perspective, as market volatility is common in the crypto space.

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