Fundstrat’s Tom Lee views bitcoin’s (BTC) latest correction as routine volatility and remains optimistic about the cryptocurrency’s trajectory for 2025, reiterating his bullish end-of-year targets.

Bitcoin has been oscillating between $90,000 and $100,000, keeping traders on edge as sentiment swings between fear and greed. After briefly falling below $90,000 on Monday, BTC rebounded strongly on Tuesday, climbing above $96,500 for an 8% recovery.

In an interview with CNBC, Lee dismissed concerns over the pullback, calling it typical for an asset like bitcoin. “A 15% decline from the highs is standard behavior for a volatile asset like BTC,” Lee said.

Glassnode data reveals that bitcoin’s drawdowns this cycle have been relatively shallow, typically around 15%-20%. This contrasts with earlier bull markets, which saw corrections of 30%-50%, suggesting the asset is stabilizing as it matures.

Lee emphasized the importance of $70,000 as a key support level, citing Fibonacci retracement levels as a guide. If that level doesn’t hold, he warned, bitcoin could potentially test $50,000. Fibonacci retracements are widely used to identify critical levels of support and resistance during market corrections.

Despite the recent price fluctuations, Lee remains confident that bitcoin will shine as one of 2025’s standout assets. He reaffirmed his year-end price prediction, projecting BTC to reach as high as $200,000 to $250,000.