On November 16, Tom Lee, executive chairman of Bitmine Immersion Technologies (BMNR), head of research at Fundstrat Global Advisors, and chief investment officer at Fundstrat Capital, said in a post on
He noted that Bitcoin has had six drawdowns of more than 50% and three drawdowns of more than 75% in the past eight and a half years, arguing that the cryptocurrency’s volatility reflects the market “discounting a huge future” and that investors needed to hold out for a “moment of survival.”
This call prompted a backlash. A prominent Bitcoin influencer known as “Bitcoin Therapist” asked how Ethereum offers utility “that hundreds of other coins don’t have,” questioning Ethereum’s moat beyond market penetration and whether traditional finance can really trade on Ethereum’s rails 24/7. “I do not want my assets on the Ethereum blockchain,” he wrote.
Lee did not provide any timing targets or metrics for ether theory, only warning that “the path to greater heights is not a straight line.” His comments extend the long-term view that the crypto cycle rewards patience, but with temporary severe drawdowns.
Looking forward, the continued growth of on-chain activity on Ethereum and its Layer 2, as well as expanded institutional use cases, will help test the theory.
