Wall Street strategist Tom Lee is drawing parallels between Ethereum ETH/USD and the 1971 abandonment of the gold standard, predicting a “very high probability” that the cryptocurrency will eventually flip Bitcoin BTC/USD in market value.
Check out the current price of ETH stock here.
Lee, newly appointed Chairman of BitMine Immersion Technologies Inc. BMNR, noted in an interview with The Compound that when the United States abandoned the gold standard in 1971, many focused on gold, but Wall Street emerged as the real winner.
The comments come as cryptocurrency markets rallied on Friday following dovish remarks from Federal Reserve Chair Jerome Powell, who signaled potential interest rate cuts in September.
Check out the current price of BTC stock here.
BitMine Builds Massive Ethereum Treasury
BitMine is pursuing what Lee calls the “alchemy of 5%” strategy, aiming to acquire 5% of Ethereum’s circulating supply, approximately 6,035,480 ETH. The company announced Monday its holdings now total 1.52 million ETH and 192 Bitcoin, making it the largest Ethereum treasury company globally.
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“In just a week, BitMine increased its ETH holdings by $1.7 billion to $6.6 billion, adding over 373,000 tokens,” Lee stated. The aggressive accumulation reflects institutional interest in Ethereum’s infrastructure potential.
BMNR shares climbed on Friday as the crypto rally boosted the company’s asset value. Options activity spiked with 348,000 contracts traded and a put/call ratio of 0.33, indicating bullish sentiment.
Technical Analysis Points To Breakout
Lee predicts Ethereum could deliver a 100x return and potentially flip Bitcoin’s market capitalization, driven by accelerating Wall Street adoption. Trader Ted Pillows noted ETH/BTC is “just one bullish candle away” from breaking an eight-year downtrend.
Crypto analyst CJ highlighted an inverse head-and-shoulders pattern targeting $4,680, with Ethereum outperforming Bitcoin by 17% over the past month while BTC dropped 5%.
Powell’s Dovish Stance Fuels Crypto Optimism
Powell’s acknowledgment of economic challenges and inflation concerns triggered the crypto surge. His openness to September rate cuts sparked renewed institutional interest in digital assets.
The dovish tone creates a favorable environment for risk assets like cryptocurrencies, with traders positioning for continued upside momentum across the sector.
Ethereum surged 9.99% to $4,707.97 in the last 24 hours, slightly below its all-time high of $4,891.70, while Bitcoin rose 2.35% to $115,621 at the time of publication.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.