Tom Lee, head of research at Fundstrat Global Advisors, forecasts a bullish trend for the cryptocurrency market over the next 12 months. Lee suggests that the market has already passed its lowest point, noting that the largest liquidation event occurred on October 10 last year when leveraged bets worth more than $19 billion were wiped out following tariff threats.
The strategist points to the four-year market cycle, predicting a bottom next month. Currently, Bitcoin trades near $77 315, which is approximately 39% below its peak of over $126 000. Meanwhile, Ether has seen a 24-hour increase of 3.2%, reaching about $2 533. Lee maintains that these price levels do not yet reflect the expected growth.
Lee emphasizes the potential of asset tokenization, estimating that moving $100 trillion of assets onto blockchains could generate $1.1 trillion in annual income, potentially creating a $20 trillion market. However, critics like Iggy Ioppe describe current tokenization efforts as theater, noting that only $60 billion in assets were on-chain as of May 31.
The regulatory landscape remains a focus, with Washington set to vote on the CLARITY Act, which could grant the CFTC authority over spot crypto markets. Lee notes that the agency already operates in this capacity. He also highlights that Fundstrat has recommended a 2% crypto allocation for over a decade, with some client portfolios now exceeding 85% in crypto assets.
