Lee Sees Bullish Period Ahead Despite Crypto's $5 Billion Hole

Crypto strategist Tom Lee predicts a 'really bullish' period for the next 12 months. According to him, the pain of the market crash has already happened and prices have not yet caught up.

The largest liquidation in crypto history occurred on October 10 last year when a threat of 100% tariffs on China led to over $19 billion in leveraged bets being wiped out in a day. Bitcoin (BTC) currently trades at around $77,315, roughly 39% below its record high above $126,000.

Lee's argument is based on the four-year cycle of crypto markets and he believes that prices are due for a rebound. He also sees potential in tokenization, which involves moving stocks and bonds onto blockchains instead of traditional back-office systems.

Larry Fink, BlackRock chief, has said every asset can be tokenized and Lee estimates that shifting $100 trillion of assets onto blockchains could generate $1.1 trillion a year in income, valued at around $20 trillion as a business.