Tom Lee's bold prediction: The true growth era of Bitcoin has not yet begun

Fundstrat Research Director Finds an Astonishing Phenomenon—The Huge Gap Between Holders and Traditional Investors, Hinting at 200x Market Growth Potential.

Data Speaks

Tom Lee, Research Director at Fundstrat Global Advisors, poses a thought-provoking question: Why are there 900 million investment accounts worldwide holding over $10,000 in assets, yet only a few million Bitcoin wallets of comparable size?

This contrast is stark. According to the latest on-chain data, the total number of global addresses holding Bitcoin has reached 55.3 million, but far fewer hold meaningful amounts (around $10,000). In comparison, the reach of traditional finance is obvious—from retirement accounts and brokerage accounts in the US to overseas investment accounts, the scale is hundreds of times larger than the crypto market.

What does this huge disparity imply? Once even a small segment of traditional investors adopts Bitcoin, the market size could expand to unimaginable levels.

Why the Gap Persists

Looking back a few years, buying Bitcoin was as difficult for ordinary investors as learning a new language. Unfamiliar exchanges, complex wallets, security risks… all these factors deter risk-averse investors.

A bigger issue is institutional barriers. No ETFs, no mainstream institutional support, regulatory frameworks are vague—traditional financial advisors simply cannot recommend crypto assets to clients. Investors with large accounts (mostly older individuals) are unfamiliar with digital assets, further widening the gap.

Intergenerational differences are also key. Younger people are more receptive to Bitcoin, but their account balances are usually small; meanwhile, investors managing large sums (IRA holders, retirement fund managers) often lack understanding of cryptocurrencies.

Everything Is Changing Now

In the past two years, everything has been rapidly changing. The launch of spot Bitcoin ETFs is a turning point—traditional giants like Fidelity and Schwab now offer direct Bitcoin exposure, just as easily as investing in stock funds.

What does this mean? All previous frictions are disappearing. Financial advisors can now confidently recommend crypto allocations to clients. Major custodians are upgrading infrastructure. Regulatory frameworks are maturing—uncertainty in developed countries’ regulation is diminishing.

Buying Bitcoin is no longer a complex technical issue but a matter of choice.

Underestimated Retirement Opportunity

Tom Lee emphasizes a neglected opportunity: U.S. retirement accounts (IRAs) hold over $35 trillion. This is a huge pool of accessible funds.

For a long time, self-managed IRAs allowed crypto investments, but the process was too complicated. Now, ETFs have changed the game—investors can easily allocate Bitcoin within existing retirement account frameworks and enjoy tax advantages.

For assets with high volatility but enormous long-term appreciation potential, placing them in retirement accounts with multi-decade cycles is ideal. This logic is increasingly forming in investors’ minds.

Adoption Speed Is Everything

How big is the gap from 4 million to 900 million? The key question isn’t whether it can be narrowed but how quickly.

Historical technology adoption curves tell us: once a critical threshold is crossed, adoption tends to grow exponentially rather than linearly. If Bitcoin moves from the “early adopters” stage to the “early majority,” new address creation could surge.

But adoption isn’t guaranteed—regulatory crackdowns, security incidents, or prolonged bear markets could interrupt this process. The 200x potential is an upper limit, achievable only in a favorable environment.

When Marginal Demand Meets Supply Constraints

This game is quite interesting. Bitcoin’s supply is fixed, with most coins held long-term, limiting market liquidity.

Once large amounts of traditional capital flood in, increases in marginal demand could trigger very sharp price reactions. The reflexivity of the crypto market will amplify this—price rises → attracts attention → promotes adoption → demand increases → price rises again. Tom Lee’s framework indicates this cycle is far from saturated.

Timing and Outlook

Tom Lee remains long-term optimistic about Bitcoin while respecting short-term market volatility. Currently, Bitcoin trades around $90,400, with market sentiment swinging between extremes of fear and greed.

It is precisely in such moments that he reminds investors not to be distracted by short-term noise—structural growth gaps are the core to watch. Adoption gaps won’t disappear overnight, but as infrastructure barriers are gradually removed, they are unlikely to persist forever.

The best days for Bitcoin may still be ahead.