Tom Lee, chairman of Bitmain, predicts a crypto rally before year-end, citing JPMorgan's openness to crypto collateral and the Fed's rare rate-cut pause. Bitcoin and Ethereum open interest hit record lows after October's deleveraging, but technical indicators are turning positive. Lee says Ethereum is dramatically undervalued compared to Bitcoin.
Tom Lee just came on the internet and said that we're going to see a crypto rally towards the end of the year. What else do you need?
You're going to see a crypto rally into the end of the year. And it really does help to see JP Morgan say they're open to the idea of using crypto as collateral. You know, we're 10 weeks before the end of the year and the S&P is at 6,800. I think it's still a base case then for people to say that in just a typical year, the S&P should gain another 4%. That would put us over 7,000 into the end of the year. And I think that that's sort of the minimum. But because we've got The Fed cutting and they started in September. They've been on pause all year. That only happened twice in the last 50 years, which is 1998 and 2024. I actually think the S&P, given the skepticism that's been plaguing this market all year, we could do far better than 4%, you know, maybe even 10% into year end. Yeah, I mean, crypto had a huge deleveraging event on October 10th and—
Listen to what he's saying, man. I've been saying this on the internet for so long. Please hear me out. He's literally saying word for word what I've been talking about specifically. What he meant by deleveraging event is we had a big liquidation event. This candlestick, this baby candlestick that we got here from Bitcoin's price. This is when Trump did 100% tariffs on China. This little baby candlestick, bro, was the biggest deleveraging event in Bitcoin in the past five years or whatever the case is. We immediately bounced. Look, we bounced. This is all the bears got. We bounced. We bounced immediately. And I'm telling you, towards the end of the year, there's going to be a meeting between Trump and leaders in China, in South Korea. They're going to do a deal. He's going to take off the 100% tariffs. And there's going to be nothing holding the price of Bitcoin back. Honestly, I can't even say that this held Bitcoin back because we bounced. So really, we have the Federal Reserve cutting interest rates. I don't know, bro. Whoever's bearish, I don't understand it.
Part of that was triggered by the escalating tensions with the US and China on tariffs and trade. That was the biggest liquidation event in 5 years for crypto. So there is still those ripple effects, you know, 2 weeks later that are plaguing the crypto market. But I think we're almost through that because a measure like something called open interest for both Ethereum and Bitcoin are at record lows at a time when the technicals for both Bitcoin and Ethereum are flipping positive. So I think you're going to see a crypto rally into the end of the year. And it really does help to see JPMorgan say they're open to the idea of using crypto as collateral.
Now, the interesting part about this is that Tom Lee is the chairman for Bitmain, and Bitmain is a Bitcoin mining company. And he recently went on some type of PR campaign basically telling the world that he's accumulating ETH. Now, even more interesting than that is the fact that if you look at Bitcoin, we're up 617%. Since the bottom for Bitcoin. Now, if you look at Ethereum specifically right now, you can see that we are up only like 400 or 400 and something percent from the bottom. I'm sorry, excuse me, 282%. It's kind of a joke. It's kind of a joke. Like, people don't get how crazy this is, but you can make— I mean, bro, Ethereum has outcompeted Bitcoin every single cycle. This is what you call undervalued. If you want an undervalued opportunity and you don't want to do too much work, I mean, bro, just buy Ethereum. Buy Ethereum. Look, Ethereum did 5,000% the previous cycle from bottom to top, and the first cycle it did 24,000%. This is Ethereum, right? If we look at Bitcoin, Bitcoin's not touching those numbers. Ethereum is like a 3-to-1 leverage, 5-to-1 leverage in comparison to Bitcoin. Bitcoin goes up 600%, we could probably see Ethereum do double or triple that. And right now Ethereum's undervalued. Don't say I didn't tell you before it happened, bro. Don't say I didn't tell you before it happened.
