Despite claims of increased stability thanks to institutional investment and the emergence of spot Bitcoin ETFs, leading crypto expert Tom Lee warns that Bitcoin remains incredibly volatile. In a recent interview with Anthony Pompliano, Lee highlighted that even with strong market support, Bitcoin could see a potential 50% drop in value under specific market conditions. His analysis emphasizes that Bitcoin’s reactions to broader market movements are amplified compared to the stock market’s typical performance. While acknowledging the S&P 500 has experienced recent large declines over the past six years, Lee suggests Bitcoin often mirrors these patterns with larger swings. This shift toward a longer cycle in Bitcoin’s market rhythm could signify growing maturity and influence from new participants in the market. Lee’s cautious outlook also suggests that a potential 50% decline from current levels might bring the price back to around $125,000, which was its previous record high. This prediction comes despite his earlier expectation of Bitcoin reaching between $200,000 and $250,000 by year-end. As of this writing, Bitcoin is trading at around $111,475, showing a 1.89% surge in the past 24 hours. Trading volume has decreased by 30%, to $51 billion, according to data from CoinMarketCap.