Fundstrat’s Tom Lee says digital assets are likely approaching the point where smaller altcoins will begin to eclipse larger-cap cryptocurrencies.
In a new interview on the Wealthion Podcast with Anthony Scaramucci, founder of SkyBridge Capital, Lee says his firm has already started recommending Ethereum (ETH) and Solana (SOL) to clients as a way to get out of the Bitcoin risk curve (BTC).
Lee, head of research at Fundstrat, says investors holding altcoins could have some “alpha” as the market cycle develops.
“The answer is yes. We recommended to our customers that if they didn’t want to use just Bitcoin, they could look at Bitcoin, Ethereum, and Solana, because we put them largely in the same category as the commodity cryptocurrencies.
We’re also entering what I think will be a new season. Next year, I really think the crypto market could expand and that’s where those who are really crypto experts… are actually going to have a little bit of alpha, because it’s actually at This time many altcoins could do very well.
I I think the stronger Bitcoin is, the stronger the ecosystem becomes and so a lot of these utility tokens and things that tokenize really start to have a lot of expected value.
In the same interview, Lee said that an additional 150% increase for Bitcoin on top of its already large gains was very likely.
“Over the next twelve months, I think anything over $250,000 is possible, but perhaps very likely based on just following this price cycle.
The second reason I think Bitcoin may have more upside than that is that the new administration has been operating on a pro-Bitcoin platform, and I think the opportunity for the U.S. to not only legitimize Bitcoin but to make it a strategic reserve asset, I think, raises what These are the possible price scenarios for Bitcoin, because if the US government, as expected, finally reaches a million Bitcoin, it will become the largest Bitcoin holder in the world and will exert a huge positive influence on the legitimization of Bitcoin.
I would add to that… It’s almost like following a MicroStrategy playbook, because MicroStrategy has proven that using Bitcoin as a balance sheet asset has really created a lot of value for MicroStrategy shareholders.
At the time of writing, Bitcoin is trading at $97,521.
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