Fundstrat's Tom Lee told CNBC's "Squawk Box" Monday that bitcoin could correct to $70,000 before breaking to new records and eventually end the year between $200,000 and $250,000. Crypto traders are accustomed to steep drawdowns in bitcoin during a bull market.

Bitcoin shot back to $97,044 on Tuesday, climbing 4.5% in a single day after plunging below $90,000 earlier in the week. The broader crypto market followed suit, with the CoinDesk 20 index rising 3.9%.