The cryptocurrency bullish cycle has just begun: Tom Lee

Tom Lee – co-founder and Head of Research at Fundstrat Global Advisors – believes that the current bullish market for cryptocurrency is still in its early stages, despite many major coins having recorded impressive gains recently.

Reason: Traditional finance remains cautious

According to Tom Lee, one of the most important reasons he believes that the bull run of cryptocurrency is still in its early stages lies in the cautious attitude of traditional finance (TradFi). In the context where the digital asset market has reached a capitalization of trillions of dollars, the participation of banks, investment funds, and large financial institutions remains relatively limited. This means that the market is still primarily driven by individual investors, the tech community, and some specialized venture capital funds.

Lee argues that: when large financial institutions have not fully "put their money down", the growth potential of cryptocurrencies has yet to be fully realized. Once major banks, pension funds, and global asset management organizations officially view cryptocurrencies as part of their investment portfolios, a new wave of capital could create a strong growth momentum that surpasses what the market is currently witnessing.

Morgan Stanley – A prime example of caution

A clear example of this hesitation comes from Morgan Stanley. Among the bank's interns in Europe, the rate of cryptocurrency ownership has significantly decreased in just two years. In 2022, 63% of interns owned Bitcoin – the largest market-cap cryptocurrency. However, to date, this percentage has fallen to just 12%, indicating a rapid decline in interest.

This reflects the general sentiment in the traditional finance community: instead of viewing cryptocurrency as a long-term investment channel, many young individuals are becoming increasingly cautious, possibly due to the strong volatility, high-profile collapses like FTX(, or the increasingly strict oversight policies from regulatory authorities.

) XRP – A rare exception

However, amidst the declining landscape, XRP has emerged as an exception. The percentage of Morgan Stanley interns owning XRP has increased from 0% in 2022 to 5% this year. Although this number is still small, it indicates a shift in perception: XRP is gradually being seen as an asset with potential real-world use due to its role in cross-border payments and Ripple's financial solutions.

The increase in XRP ownership among the younger generation working in large banks suggests that, although TradFi remains cautious, some tokens with clear utility are beginning to build trust within the financial sector. This could be a signal that the market is not entirely overlooked, but is in the process of selectively identifying and repositioning the true value of each digital asset.

Long-term outlook: Forecast for the "explosive year" 2026

Tom Lee's viewpoint bears a striking resemblance to the forecast of Dan Tapiero – a veteran investor in the digital asset space, who once stated that 2026 will be the "real breakout year" for the crypto market. Tapiero argues that the current cycle is only at the "energy accumulation" stage, while macroeconomic factors, technology, and institutional capital have not yet converged enough to create a climax.

This implies that what investors are currently witnessing – though impressive – is just the starting phase. A deeper involvement of traditional finance, along with the gradually clearer global regulatory framework, could be the catalyst for unleashing a much stronger wave of growth in the 2025–2026 period.

Ethereum – The central driver of the bull run

Among cryptocurrencies, Ethereum stands out as the "leading altcoin." Tom Lee has emphasized that ETH has essentially been "underground" priced by the market at $6,000, higher than the actual trading level, indicating that its growth potential is still not fully reflected.

According to data from Arkham, the company Bitmine founded by Lee currently holds over 7 billion USD in ETH, becoming one of the largest holders of Ethereum in the world. This is not only a sign of strategic confidence but also indicates that large organizations have begun to see ETH as a form of "reserve asset" in their portfolio.

Ethereum recently reached a new all-time high of 4,945 USD. The momentum behind this breakout includes:

• The ETF Ethereum capital flow is pouring in strongly, opening the door for large-scale institutional and individual investors.
• The level of application is becoming increasingly widespread as many global corporations implement Ethereum-based blockchain solutions in payments, supply chain management, decentralized finance ###DeFi(, and asset tokenization.

![])https://img-cdn.gateio.im/social/moments-609570d7cb55eaa294d5b863bf64978e(ETH 1-Day Price Chart | Source: TradingViewFrom Tom Lee's perspective, the overall picture appears optimistic: the current cryptocurrency market is only in the early stages of a bullish cycle, not at its peak. Traditional finance )TradFi( remains cautious, but indicators from ETH and XRP show that interest and confidence are increasing in a selective and focused manner.

If Tapiero's forecast comes true, the period of 2025–2026 could witness the convergence of:

• A clearer legal framework in the US and Europe.
• The strong entry of pension funds, banks, and traditional asset management organizations.
• Technological momentum from DeFi, tokenization of real assets )RWA( and enterprise applications.

All these factors could lead the market into a new "super cycle" of growth, surpassing the current levels of capitalization and cash flow that investors are seeing.

Taylor