Hot-Handed Hedge Fund Manager Foresees Bitcoin Falling Below $60K

Bitcoin’s Downturn May Just Be Beginning, Warns Lekker Capital’s Quinn Thompson

Bitcoin’s price correction could extend much further in 2025, with a potential drop to the $50,000–$59,000 range, according to Quinn Thompson, the founder of Lekker Capital. This would represent a nearly 50% decline from Bitcoin’s peak of just over $109,000 reached only a couple of months ago.

Speaking with CoinDesk, Thompson said, “I believe Bitcoin could end the year in the $50K to $60K range. This would be a sharp reversal from where we are now, potentially mirroring the bearish trends we saw in 2022.” He explained that the drop is unlikely to happen suddenly, instead unfolding gradually, making it harder to predict the bottom. “A slow grind downward can be even more painful because investors are left wondering whether the worst is over,” Thompson added.

Thompson has maintained a bearish outlook on Bitcoin, dismissing many bullish narratives surrounding government crypto policies and institutional purchases. He referred to recent announcements from the White House as “hollow initiatives,” asserting that they lack the long-term impact needed to drive Bitcoin prices higher.

Four Major Headwinds on the Horizon

Thompson’s pessimistic view on Bitcoin’s prospects is rooted in four key economic challenges, particularly stemming from the Trump administration’s policies. He believes these factors could create headwinds for markets, including the cryptocurrency sector, over the next six to nine months.

1. Government Spending Cuts (D.O.G.E.): Thompson highlighted that the Department of Government Efficiency (D.O.G.E.) is aggressively targeting cuts to government spending, which has been a primary driver of recent economic growth. While the cuts may not meet their ambitious goals, the early effects will likely be felt as consumer spending decreases. “Even partial cuts could have significant impacts on liquidity and the broader economy,” Thompson said.
2. Immigration Policy and Labor Market Disruptions: The administration’s crackdown on illegal immigration and stricter deportation policies could reduce the available workforce, pushing wages higher as employers compete for fewer workers. This could lead to inflationary pressures and hurt businesses that cannot afford to pay higher wages.
3. Uncertainty Surrounding Tariffs: Thompson also noted the uncertainty surrounding tariffs as a key challenge. While the Trump administration frequently threatens new tariffs, the lack of consistency regarding their implementation creates a climate of unpredictability for businesses. “This uncertainty makes companies hesitant to make significant investments or hiring decisions,” he said.
4. The Fed’s Cautious Approach to Interest Rates: With inflationary pressures still lingering, Thompson predicts the Federal Reserve will maintain a cautious approach to interest rate cuts. Though the Fed reduced rates by 1% in late 2024, Thompson expects only incremental cuts in 2025, which could limit market momentum and economic recovery.

Bitcoin Faces a Tough Road Ahead

Thompson’s outlook suggests that Bitcoin will struggle in this environment. He pointed out that the White House’s indifference to a potential recession is another indication that the economy may be heading into rough waters. “The focus on cutting growth will likely lead to lower asset prices, including Bitcoin,” Thompson explained.

The macroeconomic challenges paired with political pressures could further constrain Bitcoin’s upside potential in 2025. Thompson believes the administration’s fiscal tightening policies, aimed at reducing growth, will result in lower valuations across various asset classes. He compared the current situation to a controlled burn intended to prevent a larger crisis, though he warned that such controlled burns can quickly escalate into more significant problems.

“I expect 2025 to be a slow and difficult year for markets,” Thompson concluded. “With the policies currently in place, Bitcoin is likely to face ongoing pressure throughout the year, and it’s hard to say when we’ll see the bottom.”

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