Tom Lee believes that the crypto market still has potential despite facing concerns from the Supreme Court and tariffs.
The crypto market is under strong pressure after policy changes in the US. According to Fundstrat, Bitcoin has experienced a nearly 50% correction, while the entire market lost over 100 billion USD in just 24 hours as capital shifted to safe-haven assets like gold and silver.
The main reason stems from changes related to tax policy. After the US Supreme Court partially restricted the authority to impose emergency taxes, the market initially reacted positively. However, the government's swift implementation of a new tax rate of up to 15% has diminished risk appetite, driving capital away from crypto to precious metals – where gold even surpassed 5,160 USD/ounce.
Nevertheless, Tom Lee argues that this is not a "crypto winter," but merely a "short-term whirlwind" due to macro factors, not an internal problem of blockchain. On-chain activity, tokenization speed, and institutional participation are still increasing – indicating that the market fundamentals have not weakened.
Notably, the structure of cash flow is significant. As macro instability rises, crypto is now grouped with risk assets, rather than being seen as “digital gold” as in previous narratives. This explains why every policy shock leads to strong selling pressure.
However, the positive aspect lies in the monetary cycle. If the new tax slows growth and forces the Fed to cut interest rates, a more accommodative liquidity environment could become a catalyst for a new upward cycle in crypto.
