🎁 Tom Lee: “$ETH is too cheap compared to $BTC "🔥
Tom Lee argues that ETH is clearly undervalued compared to BTC, and the most accurate perspective is not to look at the USD price, but to view it through the ETH/BTC ratio.
Over 8 years, the average ratio of ETH/BTC has always hovered around 0.0479, with a peak in 2021 reaching 0.0873.
- Currently, the ratio is only around ~0.033, lower than both the average and the historical peak, meaning ETH is trading at a significant discount compared to BTC.
- When he combines these ratio levels with the assumption that the BTC price is in the range of $100,000 to $250,000, the “fair” price range for ETH falls around $12,000 to $22,000.
- Tom Lee believes that in 2025 there will be many tailwinds helping ETH/BTC rise: clearer policies, stronger institutional participation, and ongoing infrastructure factors of Ethereum reinforcing long-term confidence.
- According to him, ETH/BTC has the potential to return to the 8-year average or even exceed the 2021 peak, and as this ratio increases, ETH will rise faster than BTC.
- The key point in Tom Lee's argument is: when BTC rises, ETH also rises, but ETH has a stronger rebound zone because it is relatively undervalued.
- He believes that if the market accepts the valuation according to historical ratios again, ETH will have significant growth potential in this cycle, and the move of ETH into the double-digit thousand price range is not based on a narrative but on its own historical data.
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