Tom Lee Predicts Crypto Supercycle Break: Bitcoin to $250,000, Ethereum Surge to $62,000 in 2026

At Blockchain Week in Dubai , Fundstrat Global Advisors co-founder Tom Lee delivered a bullish forecast, predicting Bitcoin (BTC) could reach $250,000 and Ethereum (ETH) climb to $62,000, driven by accelerating Wall Street adoption and the tokenization of traditional assets like stocks and real estate.

Trading near $3,000 at the time, Lee described Ethereum as “grossly undervalued” and positioned it as the foundational “payment gateway of the future of finance” through its smart contract capabilities. This outlook comes amid Bitmine Immersion Technologies—where Lee serves as chairman—recently acquiring 41,946 ETH for $130 million, boosting its holdings to over 3.7 million ETH. With Bitcoin hovering around $92,500 following recent highs, Lee’s comments highlight a potential shift from the traditional four-year crypto cycle toward sustained institutional growth in decentralized finance.

Tom Lee’s Bullish Bitcoin and Ethereum Price Targets: Breaking the Four-Year Cycle

Tom Lee’s predictions emphasize a “supercycle” for cryptocurrencies, where Bitcoin could shatter its historical patterns to hit $250,000 by the end of 2026, fueled by nation-state adoption like the U.S. Strategic Bitcoin Reserve and corporate treasuries holding over $60 billion in BTC. He noted Bitcoin’s 112x return over the past decade, arguing that the asset’s scarcity and role as “digital gold” will attract trillions from traditional markets. For Ethereum, the $62,000 target—representing over 20x from current levels—stems from its dominance in tokenization, with Lee forecasting a $1.8 trillion market cap as Wall Street moves quadrillions in assets onto blockchain rails.

This break from the four-year halving-driven cycle, Lee explained, is enabled by regulatory clarity under the Trump administration and innovations like stablecoins, which he called Ethereum’s “ChatGPT moment” for demonstrating on-chain profitability. As of December 8, 2025, Bitcoin’s price stability near $92,500 post-Fusaka upgrade reflects this momentum, while Ethereum’s recent 7% surge to $3,210 underscores Lee’s conviction in its undervaluation.

• Bitcoin $250,000 Catalyst: Institutional inflows via ETFs ($150B+ AUM) and policy shifts, potentially 200x adoption in global savings pools.
• Ethereum $62,000 Upside: Smart contracts enabling tokenized RWAs, with 500x historical returns signaling “just the beginning” for growth.
• Cycle Shift: From halving volatility to steady tokenization-driven appreciation, per Lee’s analysis.

Why Ethereum Is “Grossly Undervalued” at $3,000: Tokenization and Smart Contracts

Lee argued that Ethereum’s current price near $3,000 ignores its pivotal role in the tokenization revolution, where assets like real estate and equities—totaling a quadrillion dollars—migrate to blockchain for efficiency. As the leading smart contract platform, Ethereum facilitates programmable finance, from DeFi yields to AI-integrated dApps, positioning it for explosive demand. He highlighted stablecoins’ success as proof, noting their $195 billion supply has already tokenized the dollar profitably on Ethereum.

Recent upgrades like Fusaka, which unlocked 8x L2 throughput, further bolster this thesis, reducing fees and enabling mass adoption. Lee’s Bitmine, with its $130 million ETH purchase at an average of $3,100 per token, exemplifies institutional bets on this surge, aligning with Fed rate cuts and 2026’s halving tailwinds.

• Tokenization Boom: Wall Street eyes $10T in RWAs by 2030, with Ethereum capturing 60%+ via low-cost settlements.
• Smart Contract Edge: Enables yield-bearing assets and prediction markets like Polymarket, generating $15B+ annual volume.
• Undervaluation Metrics: ETH/BTC ratio at 0.035 (multi-year low), with 34% staking rate locking supply.

Bitmine’s $130 Million ETH Bet: Institutional Confidence in Lee’s Vision

Bitmine Immersion Technologies, under Lee’s chairmanship, solidified its Ethereum treasury strategy with the acquisition of 41,946 ETH for $130 million in late November 2025, elevating total holdings to over 3.7 million ETH valued at approximately $11.5 billion. This move reflects bets on Fed easing—potentially 25 bps in December—and Ethereum’s scalability upgrades, which Lee sees as catalysts for a “multi-decade opportunity” akin to the internet’s early days. The purchase, executed via OTC desks for minimal market impact, underscores a shift toward long-term holding amid 2025’s volatility.

For blockchain investors, Bitmine’s strategy highlights Ethereum’s resilience, with staking yields at 4-5% adding to potential appreciation. As adoption grows—evident in L2 TVL surpassing $58 billion—Lee’s forecast aligns with projections of ETH flipping Bitcoin in utility dominance.

• Acquisition Details: 41,946 ETH at ~$3,100 average, funded by low-interest convertible notes.
• Treasury Yield: 4.5% staking APY compounds holdings, targeting 10%+ annual returns.
• Market Signal: Mirrors MicroStrategy’s BTC playbook, attracting $500M+ in follow-on investments.

Emerging Trends: Wall Street Adoption and the Tokenization Supercycle

Lee’s predictions tap into 2025’s key trends: Wall Street’s $150 billion ETF inflows and the GENIUS Act’s regulatory clarity, which could unlock altcoin products and tokenized markets. Tokenization, per Lee, will redefine finance by enabling fractional ownership of illiquid assets, with Ethereum’s ecosystem—processing $75 billion daily in stablecoins—leading the charge. Broader crypto adoption, including prediction markets and AI integrations, supports his supercycle thesis, projecting 200x Bitcoin growth in savings vehicles.

As December 2025 PCE data shows inflation cooling to 2.8%, easing monetary policy further bolsters risk assets like ETH. For DeFi users, this era emphasizes compliant platforms and secure wallets to navigate the surge.

• Wall Street Inflows: $11T unlocked via Schwab, Vanguard; ETFs eye $200B AUM by 2026.
• Tokenization Horizon: $16T in RWAs tokenized by 2030, per McKinsey, with Ethereum at the core.
• Policy Tailwinds: CFTC spot approvals and IMF stablecoin guidelines foster global interoperability.

In summary, Tom Lee’s December 2025 forecast of Bitcoin at $250,000 and Ethereum at $62,000 signals a transformative supercycle, propelled by tokenization and institutional embrace as of early December 2025. With Bitmine’s bold ETH accumulation and Ethereum’s undervalued smart contract utility, the path to explosive growth appears clear. For investors, review Fundstrat reports or explore regulated ETFs—secure your positions in compliant wallets to ride this blockchain wave responsibly.