A 2% bitcoin allocation that Fundstrat recommended to clients more than a decade ago has grown to over 85% of the average portfolio that followed it, Fundstrat founder and Bitmine Chairman Tom Lee says. Lee argues most investors still have no crypto exposure at all, and he expects the next 12 months to be bullish for the asset class as leverage rebuilds after a wipeout.
A 2% Bet Became the Bulk of the Portfolio
Fundstrat clients who put just 2% of their portfolios into bitcoin more than a decade ago, when it traded below $1,000, now hold an allocation worth more than 85% of the average account that took the advice, Lee said in an interview with Wealthion released on Friday. Clients did not add new money. Bitcoin's price appreciation alone did the work.
Most Investors Still Hold None
Lee estimates that 80% to 90% of investors have no crypto exposure at all, even though many of them own gold and hold large stock positions. He framed the decision less as a technical one and more as a simple choice, telling Wealthion: According to Bitcoin News: "Do they want to be right or do they want to make money?"
Leverage Reset After a Rough Stretch
Lee described the current period as bitcoin's fourth "crypto winter," comparing it to a stock bear market where leveraged traders get wiped out and some longtime holders quit in frustration. He said a major deleveraging event hit crypto in October, followed by another after the Iran war began, clearing out much of the leverage built up in the system.
Why Lee Expects a Bullish Stretch Ahead
Lee pointed to crypto-linked equities as a growing force in traditional markets: four of the Russell 1000's 21 best-performing stocks in Q3 were crypto stocks. Bitmine itself climbed 99% in the quarter. He also sees leverage returning in markets such as Korea, while Wall Street pushes further into blockchain, stablecoins and tokenized securities. Lee argued that if $100 trillion in assets eventually becomes tokenized, capturing just 1% of that activity could represent a $1 trillion net income opportunity.
He still flagged risks ahead, including a possible market correction and unresolved inflation questions, and noted the CLARITY Act remains in progress in Washington. But with the four-year cycle nearing what he considers its bottom and leverage rebuilding, Lee told Wealthion he expects crypto's next 12 months to be bullish.
Source: Bitcoin News
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