Bitcoin has had a rough start to 2025 due to economic uncertainty and a broader risk-off sentiment in global markets. Amid fresh trade tariffs and macroeconomic shifts, investors are moving toward safer assets like gold. However, Fundstrat’s Tom Lee remains optimistic, predicting that markets are close to bottoming out and that Bitcoin could still reach $150,000 by year-end.
Market Uncertainty Hits Bitcoin Hard
The recent downturn in Bitcoin isn’t happening in isolation. The U.S. has confirmed new trade tariffs against Canada and Mexico, rattling financial markets. Stocks have taken a hit, with the S&P 500 and Nasdaq dropping sharply. Bitcoin followed suit, and BTC fell to $83K from $95K, dropping 10% in a single day and wiping out its recent gains. Analysts from The Kobeissi Letter note that this “global move” away from risky assets has made Bitcoin vulnerable.
Gold, on the other hand, has performed well, trading near all-time highs. Gold went up by 10% while Bitcoin has fallen by the same percentage since January—suggesting that investors no longer see Bitcoin as a safe haven. Adding more selling pressure on BTC.
Tom Lee: Bottom in Sight, BTC Still on Track for $150K
Despite the pullback, Tom Lee believes this is just part of Bitcoin’s natural market cycle. He suggests that markets are currently in a bottoming phase and could stabilize by the end of the week. His focus is on Friday’s job data, which he sees as a major trigger for the next market move.
Speaking to CNBC, he reveals several factors behind this catastrophic bloodbath, he directly blames the government’s complex measures under the Department of Government Expenditure (DOGE) program, which has reduced public spending. On top of this, his new tariff policies have created uncertainty for businesses and investors.
He further adds that if job numbers come in worse than expected, there could be an initial wave of panic. However, Lee argues that poor data might push the Federal Reserve to cut interest rates faster, which could provide a strong tailwind for Bitcoin and stocks. Futures markets are already pricing in 75 basis points of cuts by the end of the year, on top of the 100 basis points already implemented.
The Bigger Picture for Bitcoin
Lee isn’t overly concerned about Bitcoin’s short-term weakness. He attributes the decline to broader market cycles rather than any fundamental weakness in crypto. While he acknowledges that Bitcoin could briefly drop to $62,000, he remains confident that it will stage a strong comeback, potentially breaking past $150,000 before the year is over.
According to trader Daan Crypto Trades, Bitcoin is retesting its 200-day moving average, a crucial support level in bull markets. He sees this as a rare and important moment, highlighting the need for bulls to hold this level to maintain the uptrend.
For now, all eyes are on economic data and the Fed’s next move. If conditions align, Lee’s bullish outlook might just play out.
