Tom Lee Calls Ethereum A 1971-Style Gold Moment As ETH Hits New All-Time High, Says 'Very High Probability' Of Flipping Bitcoin
News Summary
Wall Street strategist Tom Lee draws parallels between Ethereum (ETH) and the 1971 abandonment of the gold standard, predicting a “very high probability” that its market value will eventually flip Bitcoin (BTC). Lee noted that after the gold standard was abandoned in 1971, while many focused on gold, Wall Street emerged as the real winner, suggesting a similar opportunity for Ethereum. The comments come as cryptocurrency markets rallied following dovish remarks from Federal Reserve Chair Jerome Powell, who signaled potential interest rate cuts in September. Lee's company, BitMine Immersion Technologies Inc. (BMNR), is pursuing an “alchemy of 5%” strategy, aiming to acquire 5% of Ethereum’s circulating supply. It currently holds 1.52 million ETH, making it the largest Ethereum treasury company globally. BitMine increased its ETH holdings by $1.7 billion in just a week, reflecting strong institutional interest in Ethereum’s infrastructure potential. Technical analysis also supports Ethereum's breakout potential, with traders and analysts noting that ETH/BTC is poised to break an eight-year downtrend and predicting a potential 100x return for Ethereum. Powell's dovish stance creates a favorable environment for risk assets, propelling Ethereum to surge 9.99% to $4,707.97 in 24 hours, near its all-time high, while Bitcoin rose 2.35% to $115,621.
Background
In 1971, US President Nixon announced the unilateral suspension of the dollar's convertibility to gold, effectively ending the Bretton Woods system and the gold standard. This move allowed the dollar's value to float freely and had profound implications for the global financial system, notably fostering the rise of Wall Street. The Federal Reserve's monetary policy, particularly its adjustments to interest rates, directly influences the valuation and market sentiment for risk assets, including cryptocurrencies. Ethereum (ETH) and Bitcoin (BTC) are the two largest cryptocurrencies by market capitalization. Bitcoin is often seen as digital gold, while Ethereum is a blockchain platform supporting decentralized applications and smart contracts. In 2025, with Donald J. Trump re-elected as US President, Federal Reserve Chair Jerome Powell continues to lead monetary policy, and his dovish remarks on interest rates carry significant weight for global markets, especially for risk asset classes like cryptocurrencies.
In-Depth AI Insights
What are the deeper strategic implications of Tom Lee comparing Ethereum to the 1971 gold moment? - This comparison is not merely a price prediction but suggests a paradigm shift: just as financial power shifted from a commodity (gold) to more sophisticated financial instruments and markets (Wall Street) after the dollar decoupled from gold in 1971, Ethereum might represent the rise of similar infrastructural, financialized, and ecosystemic value in the digital economy. - It implies Lee believes Ethereum's value lies not just in its scarcity but crucially in its utility and network effects as the core infrastructure for decentralized applications and finance (DeFi), positioning it for potentially greater long-term growth than Bitcoin's