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In an interview with CNBC, Lee stated that since the onset of the conflict in the Middle East, Ethereum has emerged as the second most profitable asset globally, surpassing Bitcoin and only trailing behind shares of energy companies. He noted that both cryptocurrencies—Bitcoin and Ethereum—also outperform the stock market in terms of returns.
Tom Lee, co-founder of Fundstrat Global Advisors and chairman of BitMine Immersion Technologies, identified what he considers the top assets capable of providing liquidity and mitigating financial risks during military conflicts.
Lee attributed this trend to the increase in military expenditures, which he estimates to be around $30 billion per month. Should the conflict escalate, this figure could rise to $100 billion. He pointed out that a $10 increase in gasoline prices results in monthly consumer losses of approximately $4–5 billion. Against this backdrop, cryptocurrencies are becoming more appealing assets, leading to a rise in demand for Bitcoin and Ethereum.
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Lee also referenced a March study by Fundstrat, which indicated that Ethereum had increased by about 17% relative to the S&P 500 index since late February—the period marking the beginning of the U.S.-Israeli conflict with Iran.
Consequently, Ethereum has outperformed Bitcoin, gold, real estate, the MSCI World Energy index, which tracks the performance of large and mid-sized energy companies from developed nations, as well as the so-called “Magnificent Seven”—a group of seven leading U.S. technology firms, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla.
“As a store of value during wartime, digital assets appear stronger. Since the start of the conflict in the Middle East, cryptocurrencies have shown superior performance, while gold has lagged,” Lee stated.
Over the past 24 hours, Ethereum has decreased by 1.5%, reaching $2,099. The daily trading volume surged by 36%, totaling $17.4 billion. The market capitalization of the asset is estimated at $253.3 billion.
According to Lee’s recent forecast, Ethereum is expected to emerge from a bearish trend and begin a recovery by the end of March. Previously, he attributed the decline of major cryptocurrencies to the rising prices of precious metals.
