Tom Lee Says Crypto Rally Still Early as Institutions Bet on Fourth-Quarter Gains

  • Tom Lee said crypto remains in an early-stage rally and was the best-performing macro asset in Q3.
  • Lee said Bitcoin above $100,000 is achievable and $150,000 remains possible.
  • Institutional buying of crypto-related stocks is rising, with broader allocation expected from September through Q4.

Tom Lee, co-founder of Fundstrat, Fundstrat’s Head of Research and Chief Investment Officer, and chairman of Ethereum treasury company BitMine, said the recent cryptocurrency rally remains an early-stage advance and described crypto as the best-performing macro asset in the third quarter. He told CNBC that the rally began before many investors could enter, institutional investors are buying crypto-related stocks, and rising trading volume indicates positioning for a major upswing in the fourth quarter. Lee expects institutions to begin allocating more broadly to cryptocurrency in September and continue through the fourth quarter. He said Bitcoin could exceed $100,000 relatively easily because few people own cryptocurrencies, with $150,000 also possible. He cited U.S. interest rates and long-term Treasury yields as key variables, saying falling long-term yields could ease financial conditions even if the Federal Reserve raises its benchmark rate. In related commentary, Lee said a September Fed hold combined with weaker jobs and CPI data could spur a rebound, Ethereum could lead FOMO through year-end, crypto winter is nearing its end, and passage of the CLARITY Act could provide a fourth-quarter regulatory tailwind.

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