This week’s U.S. job data and Bitcoin’s 10% dip could shape a market bottom, said Fundstrat’s head of research, Tom Lee.
Crypto markets bounced last weekend as President Donald Trump teased a U.S. crypto reserve featuring five of the top digital assets by market cap, including Bitcoin (BTC) and Ethereum (ETH). Investors deployed over $330 billion across cryptocurrencies in hours due to the news.
Yet, outflows surpassed $600 billion 24 hours later and cryptos returned all the gains from Trump’s announcement. Despite the market drawdown, Lee said Bitcoin will end 2025 higher than $150,000. BTC changed hands under $83,000 as of writing, slightly recovering from the day’s low around $81,900.
More pain before Bitcoin bottoms
Speaking with CNBC, Lee predicted that a BTC market bottom may form as early as this week. Market bottoms are levels at which assets usually bounce from and are regarded as springboards for upward momentum.
Although Lee’s forecast adopted a long-term view, the pro-BTC investor expects short-term volatility will contribute to finding a bottom. This cyclical bottoming phase could send BTC down to $62,000 in March, Lee opined.
Bitcoin would fall more than 24% from current prices if Lee’s scenario played out. Also, this outcome would expand BTC’s decline from its all-time high to over 50%, marking one of the largest drawdowns in the asset’s history and setting a four-month low.
Based on historical data, the chances of this happening are nearly 50/50. Between 2013 and 2024, BTC closed March with losses six times and turned gains five times.
Some analysts agree that BTC and the broader crypto markets may suffer from risk-off sentiment due to economic uncertainty. Trade wars broke out as President Trump issued tariffs against Canada, Mexico, China, and other nation-states.
Lee said this week’s U.S. job data could cushion fears and spark investor confidence. Notably, BTC saw a modest uptick after last week’s Core PCE data before dipping again.
