Tom Lee: Crypto Bull Cycle Just Started as TradFi Hesitates
Fundstrat co-founder Tom Lee says the crypto bull cycle is only in its early stages. He cites low traditional finance adoption as evidence. Morgan Stanley interns with crypto holdings fell from 63% in 2022 to 12% now. Only XRP saw ownership rise from zero to 5%, he noted.
Lee also highlighted his firm’s unit, Bitmine, which holds over $7 billion in Ethereum (ETH). He believes ETH should trade around $6,000, a target still unmet. His bullish outlook aligns with investor Dan Tapiero’s prediction of a crypto boom in 2026.
Lee argues that as more institutional investors and banks embrace digital assets, the crypto bull cycle will gain momentum. He sees current market gains as the beginning of a much larger upward trend. Traders could benefit by positioning early.
Cryptocurrency traders should monitor developments in institutional adoption. Growing demand from big financial firms could drive further market gains. Ethereum’s performance and XRP’s rising popularity also merit attention.
Bullish
Tom Lee’s assertion that the crypto bull cycle is still in its infancy suggests significant upside potential as institutional adoption picks up. Historical precedents—such as the 2020–2021 surge following increasing ETF approvals—demonstrate how growing TradFi involvement can trigger extended rallies. Short term, markets may consolidate around major assets like ETH and XRP, but long-term momentum is likely bullish as more banks and investors enter. The combination of low current adoption and large corporate ETH holdings signals room for further gains.