Tom Lee Sees Bitcoin’s 100x Logic Now Playing Out in Ethereum
Bitcoin (BTC) has surged almost 100x since Fundstrat really helpful it close to $1,000 in 2017, enduring six corrections exceeding 50% and three over 75%. Tom Lee, Fundstrat’s Chief Investment Officer, now factors to Ethereum following the same path.
Meanwhile, Bitwise CEO Hunter Horsley notes that Bitcoin’s $1.9 trillion market cap stays comparatively small in comparison with the a whole lot of trillions in world property.
Tom Lee Makes the Case for Bitcoin and Ethereum’s Next Surge
Tom Lee’s expertise with Bitcoin goes again nearly a decade, anchored by Fundstrat’s early name round $1,000.
According to the Fundstrat government, the preliminary place has delivered roughly 100-fold returns regardless of intense corrections that shook investor confidence.
Lee emphasizes that capturing such exponential positive factors requires enduring what he calls ‘existential moments, which means occasions of pessimistic sentiment and main sell-offs.
As of this writing, Bitcoin’s market capitalization was roughly $1.91 trillion. The broader cryptocurrency market reached $3.23 trillion.
Yet, these numbers are small in comparison with conventional asset lessons, highlighting the robust development potential business leaders typically point out.
Lee attributes present weak point in crypto to market makers dealing with steadiness sheet pressure and compelled gross sales. He argues these are technical, not basic, challenges inside a large-scale supercycle.
Against this backdrop, the Fundstrat CIO advises towards leverage, noting it will increase draw back threat in periods of high volatility.
Data on Coinglass exhibits that Bitcoin futures Open Interest is close to 100,000, indicating new positions are opening and presumably signaling bullish sentiment. However, greater Open Interest may also sign short-term volatility as merchants react to shifting momentum.
Ethereum’s Supercycle and Volatility
Fundstrat’s outlook is just not restricted to Bitcoin. The agency believes Ethereum is getting into its personal supercycle, noting that Ethereum’s progress won’t be linear. Based on this, they advise buyers to count on volatility as the worth appreciates in the long run. This development mirrors Bitcoin’s historical past of sharp declines between rallies.
Lee’s level about “stomaching existential moments” is equally related for Ethereum buyers. The asset has skilled its personal vital drops, at occasions dropping over 80% from its peaks.
Nevertheless, buyers who held on had been rewarded with sizeable positive factors, strengthening the case for affected person capital in high-conviction digital property.
Bitwise’s Horsley Challenges the 4-Year Cycle Myth
Elsewhere, Bitwise CEO Hunter Horsley contextualizes Bitcoin’s potential by evaluating its measurement with traditional markets.
Horsley factors out that Bitcoin’s $1.9 trillion market cap is minimal subsequent to $120 trillion in equities, $140 trillion in mounted earnings, $250 trillion in actual property, and $30 trillion in gold.
Given this context, Bitcoin makes up solely a fraction of investable world property. Even small reallocations from conventional property to crypto might considerably increase Bitcoin’s valuation.
Since the launch of spot Bitcoin ETFs in early 2024, institutional adoption has elevated, with pension funds, endowments, and corporate treasuries allocating capital to Bitcoin.
Horsley additionally touches on Bitcoin’s cycle, usually influenced by halving occasions. He argues that pre-2026 promoting might disrupt these patterns, presumably paving the way in which for a robust bullish part in 2026.
Year-to-date, Bitcoin is up 2.5% for 2025, in response to obtainable information, pointing to constructing momentum.
Several components, together with restricted provide, rising institutional curiosity, and Bitcoin’s tiny share of world wealth, create a robust funding thesis.
Both Lee and Horsley notice that endurance is required, as risky markets can tempt buyers to promote early.
The publish Tom Lee Sees Bitcoin’s 100x Logic Now Playing Out in Ethereum appeared first on BeInCrypto.
