Tom Lee Says Bitcoin Will Double By Year End?!

0:00Hello, everyone. We got a lot to discuss today. Crypto is assaulting Wall Street. An investor thinks central banks around the world is going to be pressured by their governments to cut rates more. And we just got a jobs revision that took away more than 900 ,000 jobs in a single moment. We're live today from the desk of Anthony Pompliano.

0:27Before we get into today's show, I need your help. We currently have 21 ,426 subscribers, but my goal is 1 million. That's where you come in. Hit that subscribe button and let's get into it today. All right, ladies and gentlemen, it's important that you avoid getting lulled to sleep in financial markets. A great example where I potentially see this happening right now is with Bitcoin. The digital assets down 3 % over the last month. Oh, the horror. And it's only up 20 % since the start of the year. It's not exactly the eye-popping return numbers that energized an entire generation that was seeking asymmetric returns.

0:58But this lack of significant appreciation over the last eight months does not mean that we can expect the same thing to continue through the rest of the year. Obviously, past performance isn't indicative of future performance. Fundstrat's Tom Lee went on CNBC yesterday, and he explained why he thinks Bitcoin could double by Christmas. Take a listen. Bitcoin and cryptocurrencies like Ethereum are super sensitive to monetary policy. So I think that September 17th is an important catalyst. Crypto typically does really well in the fourth quarter. So I think Bitcoin can easily get to 200 ,000 before year end.

1:33I know it's a big move. It's almost a double. But that's also going to be a double from here. Let's just hold on. Let's just take a quick pause. A double from here. So everybody's listening to this. We're at$111 ,000. And you think by Christmas time, effectively, we could be at 200 ,000? That's right. One of the reasons Bitcoin stalled this year is the Fed's been on pause for nine months. That pause all year, if you look at an easing cycle, that's only happened two other times. In 1998 and 2024, where the Fed began to resume cuts in the fourth quarter in September. Equities do really well. As you know, crypto is beta to equity.

2:10So I think it's going to be a very strong fourth quarter. Small caps should also rally, like IWM. But that also is really bullish for Ethereum, which is highly linked to small caps. Now, do I think Bitcoin is going to double by the end of the year? I got no clue. Bitcoin has made significant moves in the past, so it wouldn't be the first time, but increasing the total market cap by approximately$2 trillion in around 100 days, that would be pretty breathtaking to watch. But regardless of the price movement, Tom's analysis of why Bitcoin is poised to move higher is dead on in my opinion. Bitcoin remains the most sensitive macro asset to global liquidity conditions.

2:45And if the Fed's going to cut interest rates in September, we should expect Bitcoin to increase in value in response. But Bitcoin is not the only asset that Wall Street is paying attention to. This may not be what Bitcoiners want to hear, but we have to be realistic about the facts of the market. In the last month, while Bitcoin was down slightly, Ethereum has been up nearly 10%, and Solana has been up more than 20 % in that same time period. This is a direct result of Wall Street broadening their interest into more crypto assets. We've seen the launch of Ether ETFs, along with the announcement of many altcoin digital asset treasury companies.

3:19Tom Lee announced Bitmine, which is a treasury company focused on Ethereum. Not only is he buying the asset and staking it, but Bitmine made an investment in a company called 8co Holdings yesterday. Why'd they do that? Well, 8co Holdings is becoming a treasury company for WorldCoin, and WorldCoin is built on top of Ethereum. You paying attention yet? So now you have companies that are investing in the ecosystems of these altcoins. And before you argue how dumb this strategy is, You should know that E.Cole Holdings, well, that saw an approximately 30x increase in their share price in a single day off the announcement.

3:53I don't know if Nasdaq has ever seen a company go from$1.72 to over$72 a share in one trading session. That's what happened yesterday. It's just crazy to me. Now, this is not only happening in the Ethereum ecosystem either. We're seeing Sol Strategies, a publicly traded Canadian company that's dedicated to building Solana infrastructure. They're cross-listing and they're going to start trading on Nasdaq this morning. The company is going to trade under the ticker STKE, which stands for stake. Now, I've been an advisor to the company for a while, so I've seen how this company in particular has been built.

4:26They own a bunch of Solana on the balance sheet. They stake their balance sheet assets, and they then own a number of validators that allow them to monetize other people's Solana that's being staked as well. In a similar vein, we saw the announcement of a new Solana-focused treasury company through Forward Industries, Inc. That company is backed by Galaxy Digital, Jump Crypto, and Multicoin. Kyle Samani, he's joining the board as the chairman. This effort raised more than$1.6 billion in cash and stablecoins to execute their strategy. Now, that doesn't happen unless the opportunity is clear from the market.

5:00So if you thought that Wall Street loved companies that simply were holding coins, especially altcoins, just wait till they realize that these companies can provide cash flow and yield. Again, it doesn't matter what individual investors believe. You have to understand what the broader financial market is dying for, and that's yield. And we've also seen asset management firms like CoinShares announce a deal to go public via SPAC. They're doing it at more than$1 billion valuation too. Cashflow from crypto-related companies. It's all the rage right now. So this brings me back to the broader theme playing out.

5:33Crypto was assaulting Wall Street. Bitcoin was first through the door. It has always been the king, and in my opinion, it will remain the king for a very long time. But Wall Street is starting to broaden their horizons. They don't care about any particular coin. They got no loyalty. They simply want returns. And if that brings them to altcoins, yield, or cash flow companies, so be it in their eyes. They're trying to fulfill their mandate to capture alpha. And it seems the market has collectively decided. Crypto-related opportunities, it's one of the best places to look in all of Wall Street. Mel Madison recently joined me for a conversation, and it made me think much more critically about financial markets.

6:12First up, Mel believes the value investing world of Warren Buffett and Charlie Munger, that's completely dead, but he's got a unique reason for why. Take a listen to Mel's thoughts here. And I think the whole Warren Buffett, Ben Graham era of investing is over. That worked great during the 40-year period where interest rates were going down. That's exactly what you wanted to do, was think like Warren Buffett and you were gonna do great. And I don't think it's a surprise that when he announced his retirement is coming up, that Berkshire Hathaway is not anywhere near where it was that day. And I don't know how long it'll be to get there.

6:49In my mind, they have missed out with$300 billion of capital on one of the greatest bull markets in history. And if there's eventually a crash and people look back and say, oh, what geniuses they were, I mean, I'm sorry, but this is going on for years now. This is like dereliction of duty to their shareholders. 30 percent. 30 percent destruction of purchasing power on 250, then 275, now 300 plus billion dollars. At some point, you're like, hey, you're losing billions of dollars. And you're not reporting it, by the way. And it's not being reported in the financials. Yeah. I put out a tweet that when Buffett retired, I said, Berkshire is the most overvalued company in the S &P 500.

7:35I'm like, I mean, if you look at their individual holdings, like it should be like 50 percent of the value. And then they've got this huge cash position that they're just I mean, it's horrible. Like like because he's operating from a post World War II declining interest rate environment perspective and props to Warren Buffett. Lord knows I'm not trying to say I'm a better investor than Warren Buffett. What I am saying is that even geniuses kind of have their moment. They have their time. And what worked for the genius at this moment might not be what type of genius is required for the next moment.

8:07And we have transitioned to a different moment. We have transitioned to a massive like like this whole situation, like I said, where we have to kind of inflate down the real value of the debt where all these things happen. And so what you have is you have, you know, the stock market and the housing market have traditionally been when we get kind of these excesses in kind of fiat, you know, reckless abandon. Here's the release valve. But we are getting valuations very high, right? We are getting valuations very high in housing. And that's something people need to live in. And then when you look at the stock market, you know, there should be some sort of rationale for that of what that price is.

8:48But there are two assets that are not really that important to the real economy. And that can go to whatever price is necessary to absorb this monetary premium. And that's gold and Bitcoin, right? Now, in my opinion, it's always going to be a good idea to buy valuable things for less than they're worth. It's just math. But what Mel's talking about is something very different. And it begs the question of how will we get to a world where central banks understand the transition underway? way. See, we have to get interest rates down across the entire world. And regardless of what people think about the tactics that we're going to use to get there, we should expect central banks around the world to be under pressure from their governments.

9:27Those governments want to get interest rates down. Take a listen to how Mel described what is going to happen on that front. I'm not saying like this is the morally correct thing to do. This is the right thing to do. And I'm also not saying it's not going to have negative side effects. It will. What my point is, is this is what they're planning to do. And I would bet that they're going to be able to do it. I would bet that Trump's going to get his people in place at the Board of Governors. They're going to be able to exert control over the federal bank presidents, the regional banks, which, you know, rotate through the FOMC.

10:02They're going to be able to put this in. And the last thing I would add, it's whether Trump, it doesn't matter. If we had Kamala Harris, the same thing would be happening. And what's going to happen is in the ECB, Christine Lagarde, she's going to do the same thing. And at the Bank of England, they're going to do the same thing. Because all of these massive developed economies, England, France, Spain, Italy, U.S., Japan, we have these unbelievable fiscal issues. And you cannot pay 5%, 6%, 7 % on a 30-year and survive. It's all going to go away. I don't care if you have to put in capital controls.

10:40I don't care if you have to do yield control. It just doesn't work any other way. You've got to get interest rates down. They're going to get interest rates down one way or another. And I think the equity market's going to like it. But I think who's going to love it even more is people that own gold and Bitcoin. Now, we see what Mel's talking about here going on in the United States already. It wouldn't surprise me to see it play out elsewhere as well. But one thing is for sure, technology is changing the world at a rapid pace. AI is a disruptive force, but so are self-driving cars, drones, rockets, genetic sequencing, humanoid robots, and many other technologies.

11:16Lower rates for longer. Bitcoin and gold in the portfolio. And Mel thinks if you've got those two, you're going to be just fine. Oh boy, we just got the jobs revision and it is bad news. Heather Long points out that we lost 911 ,000 jobs that had previously been created between April 24 and March 2025. That is a big job revision, she says. Now, that means that the labor market was weak even before the tariffs kicked in. The job market was mostly frozen in 2024 too. So Heather points out that the average job gain before the revision was 147 ,000 jobs per month. The average job gain after the revision is now only 71 ,000 jobs per month.

12:00Now, it's important to understand this is an annual revision process. The BLS does it every year. Last August, they reported 818 ,000 fewer jobs. And she claims that it's mainly due to problems accounting for new closed businesses since the pandemic. Now, before everyone gets freaked out, yes, it is bad that we actually didn't get the 911 ,000 jobs we thought we had. Yes, it is okay that this is their normal process and you shouldn't freak out too much. Both things can be true at the same time. What I'm focused on is less about this massive revision down, which when I first started paying attention to it was obviously concerning.

12:42But after you see it for a couple of years, you realize that's just the way they do it. The data is wrong. They got no clue what they're counting, obviously. But what I'm more so paying attention to is if we're gonna continue to lose jobs, If job growth isn't going to be as strong as we thought it was going to be, then the question is, can companies continue to be as productive as they have been? And so far this year, companies are very productive. They're growing. They're driving revenue. And they're driving profits. We continue to see stock prices go up. And again, it goes back to what I've been talking about.

13:16We are seeing these companies become more efficient because of things like artificial intelligence. And that is driving their value higher. So yes, we wish we had the million jobs that we've now lost. But at the end of the day, it's all about creative destruction. If companies are becoming more efficient and more productive and it's driving values higher, then all those people, they're going to find something else to do. They're going to get re-skilled. They're going to become more productive. And ultimately, the U.S. economy is going to be stronger over the long run. Doesn't feel good in the moment.

13:49That's exactly what I think is going to happen. That's it for today's show. please make sure that you're subscribed 21 ,426 subscribers my goal is 1 million and I need your help to get there I'll see you guys live tomorrow from the desk of Anthony Pompliano