- Tom Lee argues portfolio fees and flash memory prices distort inflation metrics, making the economy seem hotter than households experience.
- Fundstrat’s 2% Bitcoin recommendation from over a decade ago now accounts for more than 85% of client portfolios solely through price appreciation.
- Lee believes crypto has already bottomed and remains bullish on Ethereum, citing cycle trends and BitMine’s significant ETH holdings.
Tom Lee, head of research at Fundstrat Global Advisors, said in an interview with Wealthion that economists are misreading inflation by focusing on portfolio management fees and flash memory prices, which he argues do not reflect household inflation. Lee stated these two categories account for about 60% of the gap between core CPI and core PCE, making the Federal Reserve’s preferred measure appear hotter than reality. “I think economists are fighting last year’s wars,” Lee said, adding that stripping out those categories brings core CPI close enough to the Fed’s target that aggressive tightening is unnecessary.
Meanwhile, Fundstrat’s 2% Bitcoin allocation recommended over a decade ago has grown to more than 85% of client portfolios through price appreciation alone. Lee confirmed that clients did not add to their positions — Bitcoin’s price surge did the work. Bitcoin traded at $77,294, down 0.5% over the past 24 hours, with retail sentiment dipping to “extremely bearish.” Lee said crypto may have already hit a bottom, pointing to the four-year cycle bottom expected in October, rising leverage, and early signs of Korean investors borrowing to buy crypto again.
He also expressed a bullish outlook on Ethereum. Lee is Chairman of BitMine, which holds about 5.93 million ETH — roughly 4.9% of Ethereum’s total supply. Ethereum traded at $2,539, up 1% over the past day, with retail sentiment remaining in the “bearish” zone.
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