Fundstrat's Tom Lee says digital assets are likely nearing a point where small-cap altcoins start to outperform large-cap cryptocurrencies.
In a new interview on the Wealthion podcast with Anthony Scaramucci, founder of SkyBridge Capital, Lee said his company is already offering clients Ethereum (ETH) as a way out of the Bitcoin (BTC) risk curve. He said he has started recommending Solana (SOL).
Lee, Fundstrat's head of research, said investors who hold altcoins have the potential to gain some “alpha” as market cycles develop.
“The answer is yes. We have been encouraging our clients to consider Bitcoin, Ethereum, and Solana if they don't want to use only Bitcoin, because we believe these are some kind of core This is because it is classified into almost the same category as cryptography.
We are also entering what seems to be an alt season. Next year is when I think the crypto market could expand even further, and the real experts in crypto are going to…really capture the alpha here. Because that's when many altcoins can actually do really well.
I think the stronger Bitcoin gets, the stronger the ecosystem gets, and a lot of these utility tokens and things that get tokenized will actually have a lot of expected value. ”
In the same interview, Lee said that Bitcoin is very likely to rise another 150% on top of the huge rally it has already seen.
“I think it's possible that we could go above $250,000 in the next 12 months, and it's probably very likely just by following this price cycle.
The second reason I think Bitcoin probably has more room to rise than that is because the new administration is operating on a pro-Bitcoin platform, and not only does the US legalize Bitcoin. , I think there is potential to make it a strategic reserve asset. This is because if the U.S. government ultimately acquires 1 million Bitcoins as intended, the United States will become the world's largest holder of Bitcoins and have a huge positive impact on the world. Legalize Bitcoin.
And just to add to that…this is kind of a strategy takeover from MicroStrategy, because MicroStrategy has proven that you can really create a lot of value by using Bitcoin as a balance sheet asset for MicroStrategy. ”
At the time of this writing, Bitcoin is trading at $97,521.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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