Fundstrat’s Tom Lee defended Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) on Monday, arguing crypto’s long-term thesis remains intact despite recent underperformance.
Lee On BTC and ETH
Speaking on CNBC, Lee pushed back against claims crypto’s thesis is broken after recent weakness relative to AI and software stocks.
The comments came after questions about investor frustration and reports of crypto holders “rage quitting” positions.
“If someone asks me is the thesis for Bitcoin or Ethereum broken? It’s absolutely not,” Lee said.
Lee argued crypto infrastructure becomes increasingly important as AI agents automate commerce, tokenization expands, decentralized identity systems grow and Wall Street moves toward blockchain settlement systems.
He also sees Bitcoin and Ethereum benefiting from network effects tied to wallet growth and blockchain activity.
BTC To $2 Million
Lee outlined two long-term valuation frameworks for Bitcoin, the first one being network activity and Bitcoin’s scarcity relative to gold.
According to Lee, if Bitcoin eventually matched gold’s network value while gold reaches $5,000, BTC could theoretically approach $2 million.
“The future isn’t changed,” Lee said. “The spotlight today is on semis and software. But as people focus downstream into the future, that’s when the bid comes for Bitcoin and Ethereum.”
U.S. Economy To Expand At 4%
Lee believes U.S. economic growth could accelerate toward 4%, a rare setup for a mature economy: “The U.S. is one of the biggest exporters of the most important tool in the next 10 to 15 years, which is AI products.”
Lee expects markets to remain volatile into late 2026. “I think we could have a drawdown that’ll feel like a bear market,” Lee said. “And then from October, I think that’s when a very strong rally starts.”
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