Bitcoin (BTC) recently surged past the $110,000 mark, supported by growing institutional backing and the launch of spot Bitcoin ETFs. This 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%.

BTC's price moving sideways on the daily chart. Source: BTCUSD on Tradingview

Institutional Support Supports the Rise

Bitcoin’s latest climb toward the $110,000-plus range is triggered by a significant uptick in institutional interest. Products 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 strategies. This shift suggests that Bitcoin is steadily transitioning from a niche speculative asset to a more mainstream investment vehicle.

The rally has triggered renewed optimism around price breakout potential toward the $120,000-plus domain.

Tom Lee Sounds Caution, A 50% Bitcoin (BTC) Drop Could Be Next

However, Tom Lee offers a cautionary perspective that many market participants may be overlooking.

Tom argues that despite institutional adoption, Bitcoin remains highly correlated with traditional equity markets. In 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 possible.

The reasoning? Bitcoin has historically amplified stock-market moves. While ETFs and institutional flows may soften the narrative, they do not eliminate Bitcoin

Go to Source to See Full Article
Author: James Halver