Tom Lee, chairman of Bitmine (BMNR) and co-founder of Fundstrat, has argued that the crypto bear market is probably going over and a brand new cycle pushed by tokenization and synthetic intelligence-powered monetary providers is beginning to take form.
Talking at Consensus 2026 in Miami on Thursday, Lee famous that Bitcoin’s current energy is a historic sign that the market has damaged out of a downtrend that noticed its worth plummet from $126,000 in October to $60,000 in February.
After posting constructive month-to-month returns in March and April, BTC has gained about 5% extra in Might to this point, marking the third consecutive 12 months of constructive month-to-month returns.
“If Bitcoin declines for 3 months in a row, we’re by no means in a bear market,” Lee mentioned. “If Bitcoin closes above $76,000 this month, the bear market shall be definitively over.”
The CoinDesk Bitcoin Value Index ended April at $76,300, however the asset is presently buying and selling just under $80,000.
Li mentioned traders are nonetheless psychologically caught within the earlier crypto decline and are underestimating the energy of the present restoration. He additionally pointed to bullish technical indicators from veteran dealer John Bollinger, who just lately mentioned his development mannequin has turned constructive for Bitcoin.
Including to the bullish narrative, Lee identified that software program shares, a sector that has taken a success amid issues about AI disrupting enterprise fashions and Fundstrat’s current upgrades, have traditionally traded in shut correlation to Bitcoin. Li added that crypto belongings have outperformed most conventional markets since tensions between the US and Iran escalated, with Ethereum (ETH) main the rally.
Tokenization and AI brokers powering the subsequent cycle
Driving the subsequent bull market in cryptocurrencies are two megatrends which are disrupting finance. All belongings are moved on-chain, referred to as tokenization, and synthetic intelligence (AI) brokers utilizing blockchain rails.
Lee argued that AI brokers will want funding to maneuver worth autonomously, which can enhance their reliance on blockchain networks and tokenized monetary methods.
He pointed to the adoption of stablecoins as proof that the transition is already underway. He mentioned stablecoin buying and selling quantity has already exceeded Visa funds, whereas pointing to a report by Grayscale that the $300 trillion securities market will ultimately migrate to blockchain rails as tokenized belongings.
“The networks that host the majority of the tokenized exercise are going to seize the financial worth,” Lee mentioned.
This transformation, he argued, may basically reshape the monetary financial system itself. Lee in contrast JPMorgan, which has 300,000 workers and is anticipated to generate about $60 billion in income this 12 months, to firms akin to stablecoin issuer Tether and buying and selling large Jane Avenue, which have generated related revenue ranges with only a fraction of their workers.
“Natively digital firms that use blockchain for funds eradicate a whole lot of processes and folks,” he mentioned.
In Lee’s view, crypto-native monetary firms may more and more resemble the web firms which have changed conventional media and communications giants over the previous twenty years.
“In 10 years, half of the world’s largest monetary establishments shall be natively digital,” he mentioned.
