Think tank Fundstrat Global Advisors advised investors to prepare for another bout of high volatility, saying Bitcoin is capable of large-scale price swings of 30% or more. As reported by CNBC, the firm’s co-founder Tom Lee reaffirmed his bullish long-term outlook, forecasting that the price of the flagship cryptocurrency will rise to the $200,000–$250,000 range by the end of 2026. This forecast implies a substantial rally from the range seen at the beginning of the year, when the asset traded between $58,200 and $74,000.
At the same time, Fundstrat’s head of digital-asset strategy Sean Farrell presented a more cautious short-term outlook, allowing for a corrective pullback toward the $60,000–$65,000 range as part of a market consolidation phase. The company also highlighted a key statistical feature of Bitcoin trading. Historically, the vast majority of the asset’s annual returns are generated in just 10 trading days, and missing those days can wipe out the entire investment return. In addition, analysts believe that Bitcoin is gradually decoupling from the traditional four-year halving cycle.
Analysts note that with Bitcoin currently trading at around $70,000, a potential 30% move would translate into a sharp price swing of approximately $21,000. Such a powerful move carries significant risks for leveraged traders, potentially resulting in the complete liquidation of margin positions or, conversely, generating exceptionally high profits depending on the direction of their trades.
