Tom Lee, Fundstrat's Chief Investment Officer, believes Ethereum could mirror Bitcoin's remarkable trajectory, yielding 100x returns since 2017. Surviving market "existential moments" is key to reaping exceptional gains, says Lee. Meanwhile, Bitwise's Hunter Horsley notes Bitcoin's $1.9 trillion cap is minor compared to global assets, hinting at untapped massive growth potential.
Tom Lee draws on nearly a decade of experience with Bitcoin. When Fundstrat recommended BTC around $1,000 in 2017, few investors anticipated its meteoric trajectory. Bitcoin indeed multiplied its price by 100, but this gain came with six corrections exceeding 50% and three drops surpassing 75%, eliminating the weakest positions like Ethereum.
Lee now applies this same logic to Ethereum, an asset that has also endured drawdowns of more than 80% but has rewarded the patience of long-term investors. According to him, the market’s current weakness stems from technical constraints related to market makers, not fundamental factors. In this volatile context, using leverage remains strongly discouraged, and Coinglass data shows open interest close to 100,000 BTC contracts, suggesting an emerging bullish sentiment.
Hunter Horsley, CEO of Bitwise, emphasizes that despite its $1.9 trillion market cap, Bitcoin remains minuscule compared to major asset classes: $120 trillion for equities, $140 trillion for bonds, $250 trillion for real estate, and $30 trillion for gold. Even a reallocation of just 1% from traditional assets to cryptocurrencies could multiply Bitcoin’s current valuation by several factors.
Institutional adoption has intensified since the spot Bitcoin ETFs launched in 2024, attracting pension funds, foundations, and corporations. Horsley also challenges the halving-based cycle pattern by suggesting that a collective psychological effect could make 2025 challenging if too many investors take profits, which would paradoxically set up a strong 2026. Since the beginning of 2025, BTC has gained 2.5%, signaling building momentum.
The “existential moments” referenced by Tom Lee correspond to phases where sentiment turns to extreme pessimism and cascading capitulations test investor conviction. These shakeouts serve as a natural filter: Solid projects survive, patient investors accumulate, and short-term speculators disappear.
The combined market cap of the crypto market currently reaches $3.23 trillion, but remains tiny compared to major asset classes, reinforcing the idea of still immense growth potential. Bullish factors are converging: Limited supply, growing institutional adoption, more robust infrastructure, and minimal weight in global wealth. For both Lee and Horsley, patience remains the primary advantage in a market where volatility constantly pushes investors to abandon their positions too early.
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