Amid renewed volatility in the crypto market, foreign media quoted Fundstrat co-founder Tom Lee on CNBC as saying that the recent pullback is more like an emotional exit and does not mean that the long-term narrative for Bitcoin and Ethereum has been broken.
Currently, Bitcoin has fallen back to around $70,722, Ethereum is around $1,994, and XRP is around $1.28. Despite short-term pressure, Bitcoin has still risen 7.7% over the past week, Ethereum has risen 4.6%, and XRP has risen approximately 4.8%. The total market capitalization of the overall crypto market is approximately $2.42 trillion.
Lee remains optimistic about two major assets.
Lee stated that Bitcoin and Ethereum remain important components of the future financial system, especially given the continued expansion of artificial intelligence. He believes that as computing power and digital networks continue to grow, assets with scarcity properties that can support and protect digital systems will become even more valuable.
He defined this decline as a short-term emotional fluctuation rather than a fundamental reversal. He values the continuation of long-term trends more than intraday price fluctuations.
Bitcoin's valuation anchor remains scarcity
Regarding Bitcoin valuation, Lee mentioned two observation frameworks, one of which is network activity. He stated that wallet growth and network usage still explain a large part of Bitcoin's long-term price performance.
He also compared Bitcoin to gold, arguing that Bitcoin is scarcer. Following this line of thought, if Bitcoin reaches a network value similar to gold in the future, its price could potentially rise to approximately $2 million.
Ethereum benefits from tokenization expansion
Regarding Ethereum, Lee focused on the trend of asset tokenization. He stated that historically, every $1 increase in tokenized assets has typically resulted in an additional $1 in value for ETH.
Ethereum could directly benefit as Wall Street continues to explore the tokenization of stocks, bonds, and other real-world assets. The article argues that, beyond short-term volatility, Bitcoin's scarcity and Ethereum's position in tokenization remain the two main drivers supporting the next phase of crypto adoption.
