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Bitcoin (BTC) has risen almost 100x since Fundstrat recommended near $1,000 in 2017, experiencing six corrections exceeding 50% and three corrections exceeding 75%. Tom Lee, chief investment officer of Fundstrat, now notes that Ethereum is following a similar path.
And at the same time, Bitwise CEO Hunter Horsley points out that Bitcoin’s $1.9 trillion market capitalization remains relatively small compared to the hundreds of trillions in global assets.
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Tom Lee makes the case for the coming Bitcoin and Ethereum rally
Tom Lee’s experience with… Bitcoin About a decade, it is based on a first Fundstrat recommendation of about $1,000.
According to a Fundstrat official, the initial position yielded returns of nearly 100x despite severe corrections that shook investor confidence.
Lee emphasizes that achieving big gains requires enduring what he calls “existential moments,” meaning times of pessimism and significant sales.
At the time of writing, Bitcoin’s market capitalization is about $1.91 trillion. The broader cryptocurrency market reached $3.23 trillion.
However, these numbers are small compared to traditional asset classes, which highlights the strong growth potential often cited by industry leaders.
Lee attributes the current weakness of cryptocurrencies to market makers facing pressure from financial data and forced sales, explaining that these are technical challenges and not fundamentals in a broad supercycle.
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In this context, Fundstrat’s investment manager advises against the use of leverage, stating that it increases the risk of losses in periods of high volatility.
Data on Coinglass shows that open interest in Bitcoin futures is approaching 100,000, indicating new positions that are open and perhaps indicating a sense of optimism. However, high open interest can also indicate short-term volatility as traders react to changing momentum.
Super cycle and volatility in Ethereum
Fundstrat’s predictions are not limited to Bitcoin. The company believes that ethereum He entered a supercycle of his own, noting that the progress of Ethereum will not be linear. Accordingly, they advise investors to expect volatility as the price increases in the long term. This trend reflects Bitcoin’s history of steep declines between recoveries.
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Lee’s point about “persistent existential moments” is equally relevant for Ethereum investors. The asset has seen a significant decline of its own, sometimes losing more than 80% of its highs.
However, investors who have held on to it have been rewarded with significant profits, supporting the case for patient capital in high-conviction digital assets.
Betwise’s Horsley challenges the myth of the four-year cycle
On the other hand, Bitwise CEO Hunter Horsley puts Bitcoin in context by comparing its size with… Traditional markets.
Horsley points out that Bitcoin’s market capitalization of $1.9 trillion pales next to $120 trillion in stocks, $140 trillion in fixed income, $250 trillion in real estate, and $30 trillion in gold.
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In this context, Bitcoin constitutes only a small part of the world’s investable assets. Even small transfers from traditional assets to crypto can significantly boost Bitcoin’s valuation.
Since launch Bitcoin exchange funds At the beginning of 2024, institutional adoption has increased, as it has been allocated Pension fundsEndowments, andCompany safe Bitcoin capital.
Horsley also touches on the Bitcoin cycle, which is typically affected by fork events. He confirms that selling before 2026 could disrupt those patterns, potentially paving the way for a strong bullish phase in 2026.
Since the beginning of the year, Bitcoin has risen 2.5% for 2025, according to available data, which indicates a building momentum.
Several factors, including limited supply, growing institutional interest, and Bitcoin’s small share of global wealth, create a strong investment case.
Both Lee and Horsley point out that patience is needed, as volatile markets can tempt investors to sell early.
