Tom Lee, head of the research department at Fundstrat, forecasts a potential short-term decline but maintains an optimistic outlook for the year-end target.
“Bitcoin has dropped by 15% from its peak, which is normal for a volatile asset and represents a typical correction,” he said.
Data from Glassnode shows that in the current cycle, Bitcoin has experienced relatively modest pullbacks of around 15-20%, much smaller than the declines seen in previous bull markets, which reached 30-50%. This suggests that the asset is becoming more mature.
According to Lee, $70,000 is a critical support level. He refers to a methodology called Fibonacci levels or correction periods, which occur when Bitcoin pulls back from the point where it started its rally. Lee also believes that the $50,000 level may be tested if the previous $70,000 support levels fail to hold. Common Fibonacci retracement levels from the historical high that analysts focus on include 23.6%, 38.2%, 50%, and 61.8%.

Despite the short-term correction, Lee still believes that Bitcoin will become one of the most popular assets in 2025 and remains optimistic about year-end target levels, ranging from $200,000 to $250,000.
More Corporations Are Investing in Bitcoin
In recent weeks, four companies have announced Bitcoin purchases, and seven companies have revealed strategies that include acquiring Bitcoin. The most recent purchase was made by Genius Group (GNS), whose stock is traded on the New York Stock Exchange. On January 10, GNS announced an increase in its Bitcoin holdings to $35 million, exceeding its planned target of $120 million. During this transaction, the company acquired 372 BTC at an average price of $94,047 per Bitcoin. The initial announcement was made on November 12 when the company unveiled its “Bitcoin-first” strategy.
On Tuesday, GNS also announced a rights offering allowing shareholders to purchase additional shares at a discounted price. If fully subscribed, the rights offering could raise $33 million. GNS founder and CEO Roger Hamilton intends to participate in the rights offering and purchase 500,000 shares. The company is also leveraging borrowed funds to accumulate more Bitcoin. GNS shares rose 7% on Tuesday.
In addition to GNS, Ming Shing Group (MSW), a provider of maritime shipping services listed on Nasdaq, also purchased 500 BTC at an average price of $94,375 per Bitcoin. MSW shares have increased by 43% since the beginning of the year.
Not Everyone Sees Value in Bitcoin
JPMorgan Chase CEO Jamie Dimon continues to oppose Bitcoin.
“Bitcoin itself has no intrinsic value,” he said. “It is actively used by human traffickers, money launderers, and ransomware creators. That’s why I’m not a fan of Bitcoin.”
Like BlackRock CEO Larry Fink, Dimon has long been a Bitcoin skeptic. However, unlike Fink, who reversed his position on Bitcoin a couple of years ago, Dimon still holds the same negative views. This is despite the fact that the bank he leads profits from the increasing use of Bitcoin as a financial product, including as an authorized participant in BlackRock’s Bitcoin exchange-traded fund.