Bitcoin Price May Drop Below $60,000 by Year-End According to Analyst

Bitcoin may be entering a significant correction phase. Quinn Thompson, founder of Lekker Capital, predicts a potential drop to between $50,000 and $59,999 by year-end, a nearly 50% decline from its recent peak above $109,000.

Key points from the analysis include:

The current market is stable, leading to a slow decline that could be psychologically taxing for investors.
Thompson critiques the White House's crypto policies as ineffective, referring to them as "nothingburgers."
Four economic headwinds are expected to impact the economy over the next six to nine months:

Cutbacks in government spending aimed at reducing the U.S. deficit could harm job growth.
A crackdown on illegal immigration could tighten the labor market and increase wage demands.
Uncertainty surrounding tariffs may delay business investments and hiring decisions.
The Federal Reserve is likely to maintain tighter financial conditions due to ongoing inflation concerns.

Thompson suggests that the current administration’s policies will likely suppress asset prices, including cryptocurrencies.
The overall sentiment indicates a challenging year ahead for risk-on assets like Bitcoin, with political pressures influencing economic strategies.

Thompson concludes that the administration may continue its course until it becomes politically untenable, potentially impacting the market significantly through 2025.