Bitcoin’s price is poised to exceed $150,000 in 2025, according to Tom Lee, the co-founder and head of research at Fundstrat Global Advisors. Speaking on CNBC’s Squawk Box on March 3, Lee expressed a highly optimistic outlook for the cryptocurrency, predicting significant gains for Bitcoin in the year ahead.

Lee’s forecast is rooted in Bitcoin’s growing adoption and increased institutional interest. He pointed out that more prominent financial institutions, such as Citadel, are now actively trading Bitcoin, which is contributing to the broader acceptance of the cryptocurrency. According to Lee, this trend will continue to drive Bitcoin’s value higher. He stated that Bitcoin’s broader acceptance in the financial system is a key factor that will push the price beyond the $150,000 mark in 2025.

This optimistic prediction comes despite Bitcoin’s performance in February 2025, which saw the cryptocurrency experience a notable decline. In February, Bitcoin dropped nearly 24%, moving from an opening price of approximately $102,000 to hitting year-to-date lows of around $78,000. While this correction raised concerns among some traders, Lee viewed it as a normal part of Bitcoin’s cyclical price behavior. He explained that such downturns are to be expected and that Bitcoin often experiences these periodic drops before bouncing back strongly.

Lee’s comments about Bitcoin’s cyclical price patterns were accompanied by a reminder to investors not to attempt to time the market. He emphasized that Bitcoin typically makes the bulk of its gains within a brief window of time—approximately 10 days. This insight serves as a cautionary note for traders looking to predict Bitcoin’s price movements in the short term.

While Lee did not provide an explicit 2025 price target for Bitcoin in his latest comments, he has previously suggested that Bitcoin could reach as high as $200,000 or even $250,000 this year. This aligns with the more bullish projections seen from other market analysts. For instance, firms like Bitwise and Standard Chartered have also forecasted Bitcoin’s price hitting the $200,000 mark by the end of 2025.

In addition to Lee’s analysis, broader market trends are helping to bolster confidence in Bitcoin’s long-term prospects. One of the key developments that could contribute to Bitcoin’s bullish momentum is the backing of prominent political figures, including former President Donald Trump. Over the weekend, Trump’s renewed support for cryptocurrencies, particularly his declaration of a strategic U.S. crypto reserve, sent the market into a positive spiral. Trump has also planned to hold the first-ever White House crypto summit on March 7, which is expected to further fuel discussions about the future of digital assets.

Despite the recent price drop, Bitcoin’s fundamentals remain strong, and institutional investors continue to show interest in the asset. The increasing involvement of financial giants like Citadel, as well as the potential impact of the U.S. strategic crypto reserve, are likely to drive further growth for Bitcoin in 2025.

Overall, Tom Lee’s prediction of Bitcoin exceeding $150,000 in 2025 seems grounded in both the cryptocurrency’s historical behavior and current market developments. As the broader financial ecosystem embraces Bitcoin, the digital asset’s price is likely to continue on its upward trajectory, potentially reaching new all-time highs this year.