Renowned crypto analyst Tom Lee has recently revised his bitcoin prediction for the end of the year. Previously forecasting Bitcoin to reach $250,000, Lee now takes a more cautious stance, stating that Bitcoin price will likely finish the year “above $100,000.”
This adjustment is influenced by both technical glitches and fundamental factors, including the impact of gold purchases by stablecoin issuers such as Tether.
Tom Lee’s Adjusted Bitcoin Price Prediction
Tom Lee has long been recognized as one of the most bullish voices on Bitcoin. Over the years, he has made numerous optimistic predictions about the cryptocurrency’s future.
However, in a recent interview with CNBC, Lee admitted that the earlier target of $250,000 is unlikely to be met this year. He now estimates that the bitcoin price might only “possibly” retest its all-time high of around $125,100 from last October before closing the year above $100,000.
Despite this downward adjustment, Lee remains confident that Bitcoin still has the potential to experience “some of its best days” before year-end. This tempered bitcoin prediction reflects a more cautious outlook but retains overall positivity regarding the price in the near term.
Also read: Crypto Price Today Dips Slightly, Bitcoin Remains Stable at $87.6K
Price Impact of Market Glitches and Liquidations
A major reason behind Lee’s revised bitcoin prediction was the market crash on October 10. He explained that a technical “glitch” triggered a wave of automatic liquidations, impacting the crypto market significantly. Lee hinted that Binance, one of the world’s largest exchanges, was involved.
On that day, a synthetic stablecoin called USDe, created by Ethena Labs, suddenly dropped to $0.65 on Binance due to an error in the exchange’s oracle system. Because Binance’s platform accepted the incorrect price as real, many traders holding USDe-backed positions were forcibly liquidated.
This event wiped out nearly two million crypto accounts, including those that had been profitable moments before the liquidation. The market turmoil that followed was a key factor in Lee’s decision to adjust his bitcoin prediction and lower expectations for the near-term price.
Tether’s Gold Buying Supports a Higher Bitcoin Price Floor
Beyond technical factors, Lee highlighted a fundamental trend supporting the price in the long run, increased gold purchases by stablecoin issuers, especially Tether (USDT). On social media platform X (formerly Twitter), Lee pointed out that stablecoins have become the largest global buyers of gold and have driven gold prices higher since early 2026.
Recent reports show Tether as the world’s largest private gold holder, surpassing several central banks. This allocation of value from stablecoins into gold indirectly strengthens Bitcoin’s standing as a valuable asset.
According to Lee, this trend should not be seen as bearish but rather as establishing a “higher price floor” for Bitcoin. His bitcoin prediction suggests that the price benefits from this dynamic, reinforcing Bitcoin’s position in the broader asset landscape.
Contrasting Views and Current Bitcoin Price Trends
Before Lee’s revision, many analysts predicted strong gains in the bitcoin price by the end of 2026. For example, Mike Alfred forecasted Bitcoin reaching between $150,000 and $200,000, while Arthur Hayes anticipated a year-end rally pushing Bitcoin to between $200,000 and $250,000.
However, some experts remain cautious. Valdrin Tahiri from CCN argued that the bull cycle may have ended, signaling a bear market phase ahead. Tahiri’s bitcoin prediction places Bitcoin at $73,000 by the end of 2026 and potentially $57,000 in 2027.
Also read: Despite Volatility, JPMorgan Sees Strong Upside in Its Bitcoin Target
Since the October 10 crash, Bitcoin’s price showed volatility, briefly dipping below $90,000 before climbing back near $91,466. This nearly 20% decline over the past month serves as a warning to investors closely tracking the price.
While Tom Lee has lowered his bullish bitcoin prediction, his updated forecast still implies optimism, with the bitcoin price expected to end the year above $100,000. Technical issues like the Binance glitch highlight ongoing risks, but the fundamental trend of gold purchases by Tether and stablecoins offers a positive underpinning.
Investors should remain vigilant, balancing risk and opportunity amid continued volatility. Lee and other analysts maintain that the bitcoin price has room for significant gains in the medium term, making Bitcoin an attractive asset for those monitoring the crypto market.
