#Bitcoin plunges below $90,000#

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Overview

Bitcoin has been consolidating between $90,000 and $100,000 recently, causing volatility in investor sentiment. Despite falling below $90,000 on Monday, it rebounded to $96,500 on Tuesday, up more than 8%. Tom Lee, Head of Research at Fundstrat, believes the current correction is normal and expects Bitcoin to reach $250,000 by the end of the year. He pointed out that the decline in Bitcoin has been relatively small, indicating that it is becoming more mature. Lee believes $70,000 is a strong support level, but if it falls below that, it could test $50,000. Despite the short-term pullback, Lee remains bullish on Bitcoin, believing it will be one of the most prominent assets by 2025.

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Analysis

Bitcoin's recent dip below $90,000 has sparked market concern. While there has been a short-term correction, Fundstrat research head Tom Lee believes it's just a normal adjustment and expects bitcoin to reach a high of $250,000 by the end of the year. He points out that bitcoin's current decline of about 15%-20% is far less than previous bull market drops, indicating the asset is becoming more mature. He believes $70,000 is a strong support level, and if that doesn’t hold, then a test of the $50,000 level could be possible. Despite this, Lee remains bullish on the long-term prospects of bitcoin, believing it will be one of the most prominent assets in 2025.

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Classic Views

Bitcoin's short-term adjustment is normal, a normal pullback for a volatile asset.

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Bitcoin's correction is relatively small, indicating that the asset is becoming more mature.

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70,000 USD is a strong support level for Bitcoin. If it breaks down, it could test the 50,000 USD level.

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Tom Lee remains bullish on Bitcoin, predicting it will reach 200,000 to 250,000 USD by year-end.

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