What To Know:
- Fundstrat’s Tom Lee remains bullish despite global market caution, calling the current cycle a “misunderstood supercycle.”
- He expects the S&P 500 to reach 7,000–7,500 points by year-end, led by financials, small-caps, and AI-linked sectors.
- Lee predicts Bitcoin could hit $150,000–$200,000 and Ethereum $9,000–$12,000 by early next year, driven by rising demand, stablecoin adoption, and asset tokenization.
Amid global financial markets slump, Fundstrat’s Tom Lee recently voiced his unshaken optimism towards Bitcoin. Even as many analysts are warning of a probable downturn, Lee insists the bull market is alive and expanding.
In his latest interview, Lee described current market conditions as part of a misunderstood “supercycle.” Lee believes investors are reading the wrong signals. Inflation concerns, the inverted yield curve, and doubts around an overheated AI sector have caused misplaced caution, not realistic foresight.
Tom Lee: “The bull market is far from over”
Lee argued that the inverted yield curve, an old-classic recession indicator, should now be seen differently. “It reflects shifting inflation expectations, not a signal of collapse,” he said. Businesses, he added, are showing adaptability and profitability far beyond consensus forecasts.
“Time is a friend of great companies and an enemy of mediocre ones,” Lee noted, adding that innovation remains the decisive factor in separating winners from laggards.
He compared the current artificial intelligence boom with the 1990s internet frenzy but stressed the differences. Then, companies overspent on infrastructure. Now, he said, the focus is on functionality and value creation. “AI demand, particularly for Nvidia’s chips, exceeds supply. Capital expenditures are lagging behind innovation,” Lee explained.
Lee projects that the S&P 500 could climb to 7,000–7,500 points by the end of the year. He expects financials, small-cap stocks, and AI-linked firms to lead the rebound. His views contrast sharply with many on Wall Street who see the current rally as overstretched.
On crypto assets, Lee’s optimism remains unshakeable. He sees Bitcoin as severely underowned and believes it could rise to between $150,000 and $200,000 by year-end. Ethereum, he said, might emerge as the biggest gainer, lifted by rising adoption of stablecoins and tokenized assets. Lee estimates ETH could reach between $9,000 and $12,000 by January.
He dismissed fears that inflation or geopolitics could derail markets unless oil prices spike to $200 per barrel, a case he deems unlikely. With the Federal Reserve nearing the end of its tightening phase, Lee expects rate cuts by December. This move could re-ignite liquidity and push risk assets higher.
“When everyone thinks the top is near, the top won’t come,” he remarked, as he advised investors to maintain long-term conviction despite short-term swings. For those who missed earlier rallies, Lee recommended using dollar-cost averaging as a disciplined re-entry strategy.
He closed his remarks with a familiar refrain: “A crisis is composed of danger and opportunity—most people only see the danger, while smart money is always looking for the opportunity.”
Across crypto markets, data seems bearish at the moment. The global crypto market cap stands at $3.57 trillion, down 1.8% in the past 24 hours, with daily trading volumes at $157 billion. Bitcoin dominates at 57.8%, while Ethereum holds 11.7%, according to CoinGecko. Bitcoin trades at $103,420, up 0.1% in the past hour, and Ethereum at $3,446.28, showing similar movement.
Last month, dubbed “Uptober” by traders, saw a slowdown triggered by US President Trump’s new tariffs on China, which revived trade tensions and rattled global markets. Amid the latest crypto slump, legacy altcoins like Zcash, ICP, Dash, Monero, Filecoin, Uniswap, have taken center stage. This counter trend shows a structural rotation owing to fresh narratives around privacy, AI, and on-chain storage. Bitcoin and Ethereum slowed down over the past month, but several altcoin projects saw substantial gains.
Among altcoins, Zcash and Internet Computer led the pack, each more than doubling in value over the past 30 days. Zcash traded at $485.06 after climbing 82 percent in the month. Internet Computer, or ICP, rose 97.1 percent and was priced at $6.36 on the same day. Other legacy names made notable moves. Dash gained 16.5 percent to trade at $66.93. Monero rose 20.6 percent to $375.67. Filecoin climbed 53 percent and was at $2.38. Uniswap increased 41.8 percent to $8.62, with a one day spike of 20.5 percent tied to renewed attention around a governance proposal that could change Uniswap’s token economics and fee model.
Also Read: South Korea Traders Exit Market; Swap Memecoins for AI Stocks
