Fundstrat co-founder Tom Lee on Monday pushed back against growing concerns over market weakness, arguing that cryptocurrencies remain in healthy long-term uptrends despite recent volatility.
Why Crypto Is Underperforming
Speaking on CNBC’s Power Lunch, Lee acknowledged that cryptocurrency investors have been disappointed this year as digital assets largely failed to participate in the enthusiasm surrounding AI-related stocks.
Over the past year, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP) slumped more than 40%.
Despite the underperformance, Lee said “Crypto is a downstream story of AI.”
He explained that increasingly powerful AI systems will require blockchain-based verification and validation tools to help authenticate transactions and combat fraud.
He also pointed to a rise in AI-related security exploits across financial services, arguing that blockchain technology could become increasingly important as attack surfaces expand.
According to Lee, tokenization remains one of the most significant developments underway on Wall Street, with assets such as money, equities and real estate increasingly being represented on blockchain networks.
“These are composability issues that only happen on blockchain,” he said.
Why It Matters
While AI stocks have captured most of the market’s attention in 2026, Lee believes blockchain adoption, tokenization and AI-driven verification needs remain powerful long-term catalysts for the crypto sector.
He also characterized companies such as SpaceX as rare investment opportunities led by what he called “N-of-one” founders, suggesting investors continue to have significant appetite for transformative technology businesses despite recent market volatility.
Lee noted last week’s market sell-off was mainly a reaction to uncertain guidance from Broadcom, fundraising efforts from AI companies and geopolitical tensions.
Cryptocurrency markets valuation eroded around 11% over the past week with BTC, ETH and XRP losing 10% or more.
“I think it’s a false narrative to think the bull market is in trouble,” Lee said. “I think the bull market is still intact and in very good shape.”
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