Bitcoin Reclaims $110K Amid Institutional Support, But Tom Lee Warns of a Potential BTC 50% Drop

Bitcoin (BTC) recently surged past the $110,000 mark, supported by growing institutional backing and the launch of spot Bitcoin ￰0￱ comes in after a week of volatility that has seen BTC go below support levels. However, despite the bullish momentum, Tom Lee, chairman of BitMine, warns the flagship cryptocurrency could still endure a dramatic correction of up to 50%. Institutional Support Supports the Rise Bitcoin’s latest climb toward the $110,000-plus range is triggered by a significant uptick in institutional ￰1￱ such as the IBIT (iShares Bitcoin Trust) offer investors easier exposure to Bitcoin via traditional brokerage platforms. Additionally, broader regulatory clarity has enabled major banks and asset managers to deepen their crypto ￰2￱ shift suggests that Bitcoin is steadily transitioning from a niche speculative asset to a more mainstream investment ￰3￱ rally has triggered renewed optimism around price breakout potential toward the $120,000-plus ￰4￱ Lee Sounds Caution, A 50% Bitcoin (BTC) Drop Could Be Next However, Tom Lee offers a cautionary perspective that many market participants may be ￰5￱ argues that despite institutional adoption, Bitcoin remains highly correlated with traditional equity ￰6￱ his words: “If the S&P is down 20%, Bitcoin could be down 40%.” Drawing on this dynamic, Lee maintains that a full 50% collapse remains entirely ￰7￱ reasoning?

Bitcoin has historically amplified stock-market ￰8￱ ETFs and institutional flows may soften the narrative, they do not eliminate Bitcoin’s structural ￰9￱ also points out the breakdown of the classical four-year Bitcoin market cycle, warning that we may be entering a “longer cycle” with more extreme ￰10￱ forecast still anticipates Bitcoin reaching between $200,000 and $250,000 by year-end, yet a 50% correction from those levels would land $100,000–$125,000. If the current $110,000 peak is already the top, a fall toward roughly $55,000 is within his ￰11￱ This Means for BTC Investors For investors tracking Bitcoin’s trajectory , the mix of bullish institutional signals and bearish risk warnings demands a balanced ￰12￱ one hand, the ETF infrastructure and regulatory progress offer clear legitimacy for Bitcoin as an asset ￰13￱ the other, the risk of sharp drawdowns remains under-appreciated, suggesting that future volatility could continue to define Bitcoin’s long-term growth ￰14￱ image from ChatGPT, BTCUSD on Tradingview