Why Tom Lee says Ethereum is heading into 2026 ‘supercycle’ despite price down

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said.“Year-end tax-loss related selling is pushing down crypto and crypto equity prices and this effect tends to be the greatest from 12/26 to 12/30, so we are navigating markets with this in mind,” he said.Still, Ethereum trembling just below $3,000 is a far cry from the $7,500 end-of-year price predicted by the likes of Standard Chartered back in August.Professional prognosticators had reason to be bullish on Ethereum. This year the network celebrated 10 years since its debut and successfully rolled out two major technical upgrades.Wall Street king JP Morgan selected Ethereum for its first-ever tokenised money market fund, an asset class valued at $9 trillion by the Bank of International Settlements.Meanwhile, corporate treasuries and exchange-traded funds are holding $20 billion worth of Ethereum.Despite the choppy waters, Lee remains bullish on Ethereum in the long-term and describes the current market paradigm as a “supercycle.”Bitmine announced it purchased another $131 million in Ethereum on Monday. The haul adds to Bitmine’s $1.4 billion Ethereum buying spree in December alone.“We continue to be the largest ‘fresh money’ buyer of Ethereum in the world,” Lee said.Backed by premier institutional investors — including Peter Thiel’s Founders Fund and Cathie Wood’s ARK Invest — Bitmine now owns 3.4% of Ethereum’s circulating supply and is aiming for 5%.That stash is worth just over $12 billion at time of reporting. The firm also plans to stake its Ethereum tokens to generate yield and projects staking will generate $374 million in annual income, or over $1 million per day.Staking Ethereum tokens helps secure the network.But at the moment, Lee’s conviction in a crypto “supercycle” is not supporting his firm’s share price. Bitmine stock has fallen over 50% since September.Lee has long been one of the most ardent Ethereum bulls. In August, he called for $7,500 by year’s end and $25,000 by 2028.To be sure, his bullishness comes as firms pivoting to becoming holders of cryptocurrencies are under pressure, with many of them being worth less than their underlying assets.Wolfgang Münchau, the co-founder and director of Eurointelligence, said that setting up an investment business to buy assets like Bitcoin “in the hope that it would never fall below some imaginary ‘support level,’ this is downright stupid.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,881.90 -14.34 (-0.21%)Dow 3048,255.29 -111.77 (-0.23%)Nasdaq23,375.36 -43.72 (-0.19%)Russell 20002,490.69 -9.90 (-0.40%)VIX14.60 +0.27 (+1.88%)Gold4,340.50 -45.80 (-1.04%)Trending tickersBTC-USD Bitcoin USD 87,765.45 -552.85 (-0.63%)NKE NIKE, Inc. 63.89 +2.70 (+4.40%)INBS Intelligent Bio Solutions Inc. 11.20 +7.10 (+173.17%)CORT Corcept Therapeutics Incorporated 35.83 -34.37 (-48.96%)VNDA Vanda Pharmaceuticals Inc. 9.09 +2.05 (+29.23%)PortfolioSign in to access your portfolioSign inTop gainersAXSM Axsome Therapeutics, Inc. 181.87 +33.08 (+22.23%)ONDS Ondas Holdings Inc. 10.13 +1.14 (+12.69%)DJTWW Trump Media & Technology Group Corp. 7.43 +0.58 (+8.47%)PSNY Polestar Automotive Holding UK PLC 20.94 +1.45 (+7.44%)DJT Trump Media & Technology Group Corp. 13.49 +0.92 (+7.36%)Top losersCORT Corcept Therapeutics Incorporated 35.79 -34.40 (-49.01%)NIO NIO Inc. 5.07 -0.43 (-7.82%)PSLV Sprott Physical Silver Trust 23.82 -1.40 (-5.57%)RGC Regencell Bioscience Holdings Limited 21.63 -1.27 (-5.55%)ABVX ABIVAX Société Anonyme 131.77 -6.57 (-4.75%)Most activeONDS Ondas Holdings Inc. 10.13 +1.14 (+12.69%)NVDA NVIDIA Corporation 188.72 +1.18 (+0.63%)NIO NIO Inc. 5.07 -0.43 (-7.82%)PLUG Plug Power Inc. 1.9918 +0.0568 (+2.94%)TSLA Tesla, Inc. 454.73 +0.49 (+0.11%)Top economic eventsEarnings eventsMy earnings eventsEarnings events