Tom Lee "Bitcoin will reach 2 million dollars within 5 years... Ethereum is an undervalued asset"

Tom Lee, chairman of Bitmain, said, "The recent sharp rise in gold prices is driven by buying from the stablecoin industry," and projected, "If gold settles at 5,000 dollars, Bitcoin (BTC) could reach 1.6 million to 2 million dollars within 5 years."

Lee appeared on the podcast 'The Pomp Podcast' on the 23rd (local time) and said, "Gold prices have continued to rise after completing a 'cup and handle' pattern since July this year," adding, "Dollar-denominated stablecoin issuance surged in the same period, and issuers required to maintain over-collateralization bought gold, stimulating market demand."

He added, "This trend also works positively for Bitcoin. If gold rises, the value of the Bitcoin network as a store of monetary value also increases," and predicted, "If gold stabilizes at 5,000 dollars, Bitcoin could reach 2 million dollars within 5 years."

Bitmain holds 3.2 million Ethereum… "Will become the world's largest holding company"

Regarding Bitmain's financial strategy, Lee said, "We have incorporated Ethereum (ETH) as a core asset and currently hold more than 3.2 million, which is about 2.7% of the total supply, and we plan to expand to 6 million in the long term."

He explained, "Ethereum is not just an asset but a smart-contract-based financial infrastructure," and said, "Considering an annual 3% yield from staking, an asset base of about 14 billion dollars could generate 500 million dollars in pre-tax annual profit."

He continued, "Through an Ethereum-centered financial structure, Bitmain will enter the top 1,000 profitable companies in the U.S.," adding, "If the strategy received attention for Bitcoin (BTC) holdings, Bitmain will become the standard for new institutional investment portfolios through Ethereum."

"This year is a turning point in the transition of the financial system... Ethereum at the center"

Lee assessed, "After the end of the gold standard in 1971 (the practice of exchanging central bank-issued banknotes for gold), Wall Street built derivatives, futures markets, CDs, and money markets to maintain dollar hegemony," and diagnosed, "2025 will be a turning point for a similar transition to blockchain-based financial systems."

He said, "Major financial institutions such as BlackRock and Robinhood are currently advancing stablecoins and tokenized assets, and most of these are being built on the Ethereum network," adding, "Ultimately, Wall Street will adopt Ethereum as a trustable neutral public blockchain."

He added, "If Ethereum's ratio to Bitcoin recovers to its 2021 peak, the per-unit price could rise to around 21,000 dollars," and evaluated, "Ethereum is still an undervalued asset."

On the market cycle, he said, "Many investors absolutely believe in the 'four-year cycle,' but the more the market is convinced of a specific pattern, the more likely it is to be wrong," and added, "This cycle will be longer than before."

He advised, "Bitcoin and the stock market will remain volatile next year, but with the Fed cutting rates, a manufacturing recovery, and innovation in artificial intelligence (AI) combining, the U.S. economy will continue to grow through 2026," and warned, "Do not be shaken by short-term adjustments and focus on structural changes."