Bitcoin's current price is a "good entry point," but it could drop to $70,000, according to Fundstrat

Tom Lee of Fundstrat claims that anyone who purchases Bitcoin for about $90,000 now won't "lose money" in the long run.

According to the chief investment officer of Fundstrat Capital, Bitcoin's current price of $90,000 is still a "good entry point" for long-term investors, even if analysts have warned that the commodity might drop below $70,000. 

"At $90,000, I don't think anyone will lose money purchasing here. In an interview with CNBC on January 13, Tom Lee stated that Bitcoin's price of $97,003 will be "one of the best-performing assets of the year," adding that if they're trying to time this, perhaps they get lucky and it gets to $70,000.

The price of Bitcoin was $91,662 at the time of the interview. Although Bitcoin may have dropped 15% from its peak, Lee stated that this is a "quite typical correction" for a "hyper-volatile asset." 

Since we are still in the early stages of this halving cycle, I believe that Bitcoin will be among the top-performing assets this year, which implies that you will have a significant opportunity in the near future.

Although there is a chance that Bitcoin might drop as low as the $50,000 level, Lee stated that his company sees one scenario in which it returns to the $70,000 range before rising. 

But once more, Lee stated, "That is not a new level; it's just where it touches before it starts to rally." 

Markus Thielen, the founder of 10x Research, believes that the "high-inflation narrative" will persist in the upcoming weeks, which will put pressure on Bitcoin, which he believes may drop as low as $69,000 if specific resistance walls are broken.

Lee advised investors to "ride out" any short-term volatility and stated that the next significant date for Bitcoin and the stock market will be January 15, when Consumer Price Index inflation data is released.

Related: Almost three times as much Bitcoin was collected by ETFs than was created in December.

Analysts have observed in recent weeks that rising Treasury yields, a strengthening US dollar, and concerns that the US Federal Reserve may tighten monetary policy in 2025 have all contributed to the current price fall of Bitcoin.

On January 29, the Federal Reserve will release its first interest rate decision of 2025.

However, despite short-term difficulties, asset managers VanEck and Bitwise estimate Bitcoin will reach $180,000 to $200,000 by 2025’s end—especially if the US adopts a Bitcoin reserve.

Bitcoin is currently trading at $94,650—up 5.4% from $89,800 during the prior 11 hours, when it briefly dropped below $90,000 for the first time since Nov. 19, CoinGecko data reveals.

The above content is based on the article by William Suberg from Brayden Lindrea

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Based on the Cointelegraph article, Bitcoin could dip below $70K, but the current price is seen as a good entry point. This view is shared by Fundstrat, a well-known market research firm that often provides in-depth analysis and forecasts of the cryptocurrency market.

Market Pullback and Buying Opportunity

Fundstrat suggests that Bitcoin could experience a short-term drop below $70K, which is based on technical analysis and market sentiment. After several months of growth, markets often undergo a correction phase, and a price pullback doesn’t necessarily indicate a reversal of the long-term trend. Rather, it is a natural process for market self-correction, and it often presents new entry opportunities for investors.

However, Fundstrat is not entirely bearish. They believe that the current price range of Bitcoin (near $70K) is actually an ideal entry point. Given the long-term value drivers of Bitcoin, such as institutional adoption, mainstream payment integration, and global macroeconomic uncertainties, Bitcoin’s appeal remains strong. For long-term holders, this pullback is simply an opportunity to re-enter the market at a better price.

Long-Term Bitcoin Outlook

Bitcoin is often referred to as "digital gold" due to its decentralized nature and fixed supply, which make it a relatively stable asset when faced with inflation and currency devaluation. Especially in a globally uncertain economic environment, more investors are beginning to view Bitcoin as a safe haven.

In addition, as the Bitcoin network continues to evolve, technological innovations and the expansion of its ecosystem provide more growth potential. For example, the development of the Lightning Network has improved transaction speed and efficiency, while an increasing number of countries are exploring the regulation and adoption of digital currencies, all of which further enhance Bitcoin’s mass adoption.

Market Sentiment and Investment Strategy

Although the market pullback provides a lower entry price, it also means investors must remain sensitive to market sentiment. The crypto market is highly volatile, and short-term price fluctuations can cause discomfort for some investors. Therefore, having a clear investment strategy is crucial when entering such a volatile market.

For those who are long-term bullish on Bitcoin’s future, the current price could be an ideal entry point. Especially if you can withstand some short-term volatility, holding Bitcoin in the long run may yield substantial returns.

Conclusion

In conclusion, while Bitcoin faces pullback pressures, the current price range presents a relatively favorable entry point for investors with a long-term outlook. From a fundamental perspective, Bitcoin continues to have strong value support, particularly in the context of increasing global financial uncertainty. If you are confident in Bitcoin’s future, buying in during this pullback could be a wise decision. However, it’s important to remain cautious, as cryptocurrency markets remain volatile and carry inherent risks.