Bitcoin News: Tom Lee’s Bullish BTC Price Prediction Amid Oversold Conditions and Growing Tariff Fears

The cryptocurrency market remained volatile as investors remained anxious about President Donald Trump’s planned tariff policies. The executive director of Fundstrat Global Advisors, Tom Lee, suggests that current market undervalued conditions may allow Bitcoin (BTC) to position itself as a market leader in an upcoming recovery. The current market conditions have led Lee to predict the positive future performance of Bitcoin as it recovers over the remainder of 2025. 

Market Volatility and Tariff Concerns: What’s Behind the Current Fears?

President Trump’s March 2025 declaration of major tariffs spread economic uncertainty, impacting both stock market values and cryptocurrency. The hand of President Trump delivered “Liberation Day” tariffs in April, which aimed to increase domestic output while raising worries regarding inflation instability, diminished worldwide commerce, and general economic deceleration. Market participants started showing signs of risk aversion as they began selling risky investments, including cryptocurrencies such as Bitcoin. 

The Nasdaq Composite and the S&P 500 witnessed significant price drops due to economic fears and corrected their market value. Large-scale selling occurred due to tariff anxiety, thus negatively affecting the Bitcoin price. After March concluded, Bitcoin held a value of around $81,500 while maintaining a considerable distance from its previous peak of $100,000 in mid-January. Trump’s tariff implementation drew investors’ attention to its adverse potential effects on Bitcoin’s long-term fundamentals, preventing upward price action.

Image 1- S&P 500 Index, provided by Neil Sethi,  published on X, April 1, 2025.

The recovery of Bitcoin still receives positive predictions from analysts considering recent market trends. Both global trade uncertainty and broad-based market changes due to fears about cryptocurrencies require an evaluation of future market directions, as current market conditions have greatly spooked cryptocurrency investors.

Tom Lee’s Optimistic Outlook Amid Market Fears

As co-founder of Fundstrat Global Advisors, Tom Lee has long been a leader in promoting Bitcoin and cryptocurrencies across various markets. Market fears do not deter Lee from maintaining optimism since the market, including Bitcoin, remains “deeply oversold” at present. The market has shown excessive concern about Trump’s tariff policies, but Lee predicts a market recovery is possible because of this overreaction.

Lee demonstrated through his analysis that market conditions create perfect benefits for an upcoming recovery. Investors have withdrawn most risk exposure from their portfolios because they worry about inflation and economic deceleration. The ” oversell “ market condition creates an opportunity for Bitcoin recovery as investors hold substantial untapped demand while waiting for economic stabilization and definite policy frameworks. Bitcoin price and other risk assets should experience a resurgence when investors acquire better economic insight into the future after the tariff policies stabilize.

“Post-Wednesday, I think markets are going to have some visibility, and that allows us to take some of the selling pressure off,” says @fundstrat. https://t.co/Qw4Zr0HUBT

— Squawk Box (@SquawkCNBC) March 31, 2025

Moreover, Tom Lee claims that crypto markets demonstrate rapid market recouping tendencies when prices plunge fast. Historically, Bitcoin’s price is robust during market instability periods, according to experts who see this cryptocurrency becoming a leader in the upcoming market recuperation. The return of Bitcoin’s bullish momentum seems possible after governments lift policy uncertainty and worldwide liquidity regains strength.

Bitcoin’s Potential Role in Market Recovery

Historical evidence shows that Bitcoin functions as a measurement of general market mood. Bitcoin has served as the market-leading asset in both market downturns and market rebounds of traditional financial systems. The stabilization of global economic conditions makes Lee believe Bitcoin will emerge as the market leader in its recovery.

Bitcoin regains its upward momentum after price corrections because of its proven track record. The cryptocurrency market has a track record of volatility, but Bitcoin stands strong following its major price drops. The rebirth of investor support during market improvement would boost Bitcoin appreciation because it might drive the overall market recovery.

Lee predicts Bitcoin will attract increased adoption since institutional and retail investors will put their funds into decentralized assets. The rising acceptance of Bitcoin as a value store among investors during inflationary times leads Lee to believe that digital currency will thrive in Q2 of 2025. The macroeconomic stabilization and Bitcoin’s role as a financial system hedge will drive its price growth upward.