BitMine chairman Tom Lee believes the crypto rally could extend further. He expects the current market cycle to attract more investors as financial companies move into digital assets, stablecoins gain use and new applications emerge around artificial intelligence.
Lee said this cycle could be different from previous rallies because it is not being driven by one trend. Instead, several developments are creating new sources of demand.
“I think that there is a much larger cohort of new investors that are going to come to crypto,” Lee said.
Tokenization Could Bring New Investors
Lee sees tokenization as one of the main reasons the rally could continue. Financial companies are exploring ways to put stocks and other assets on digital networks, opening the door to new ways of trading and using them.
He said companies are unlikely to adopt this technology unless it can lower costs, improve operations or create new sources of revenue.
“The only reason enterprises will adopt and deploy blockchains and crypto is if it really is a 10x improvement either on the operational side or their ability to generate revenues and fees and deliver a better customer experience,” Lee said.
The growing use of stablecoins could also support this shift by giving companies a digital way to move money and settle transactions.
AI Could Add Another Source of Demand
Lee also pointed to artificial intelligence as a potential driver.
AI agents could eventually make payments, buy services or move stablecoins without a person handling every transaction. That could increase demand for systems that can process payments at any time.
The combination of AI, digital payments and tokenized assets could therefore bring new users into the sector beyond people who trade cryptocurrencies.
Ethereum Could Benefit
Lee also expects Ethereum to gain from the growth of tokenized assets and financial applications.
He said financial institutions are examining Ethereum because of its established network, security and widespread use.
“I think that if we do a measured move … could Ethereum 10x above 10 to 12x above its prior highs of 5,000? I think that’s very possible,” Lee said.
That would put the Ethereum price around $60,000 to $72,000 based on Lee’s longer-term view. He also expects the asset to revisit its previous high in the near term.
These are Lee’s projections and are not guaranteed outcomes.
Fed Policy Could Add Support
Lee also sees Federal Reserve policy as another factor that could affect the rally.
He argued that markets continued to rise even after a recent rate hike, suggesting investors may have already absorbed the impact of tighter policy.
“Since Kevin Worsh hiked, the stock market has had a face ripper rally and then crypto has gone … parabolic,” Lee said.
Lee expects inflation to decline and believes the Fed could eventually move toward a neutral policy. If that happens, financial conditions could become more supportive for assets such as Bitcoin and Ethereum.
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