• 💹 Market Resilience Despite Challenges — Tom Lee points out that despite tariff disputes and government shutdowns, the S&P 500 has performed better than expected, exceeding his targets. He forecasts another 4–10% growth into year-end, driven by the Federal Reserve’s rate cuts and persistent investor skepticism.
• 🪙 Crypto’s Deleveraging Event and Recovery — He explains that crypto experienced its largest deleveraging in five years on October 10, mainly due to escalating U.S.–China trade tensions. However, with record-low open interest and improving technicals for Bitcoin and Ethereum, Lee believes a crypto rally is imminent.
• 🏦 Institutional Acceptance Boosts Confidence — The mention of JP Morgan’s openness to using crypto as collateral adds legitimacy and momentum to the sector.
• 📊 Crypto as a Market Signal — Lee reiterates that cryptocurrencies often lead stock market trends and signal overall market liquidity. Given Bitcoin’s mild drop despite major liquidation, it’s proving itself as a store of value similar to gold.
• ⚙️ Ethereum’s Fundamental Strength — Ethereum’s underlying activity on Layer 1 and Layer 2 networks continues to rise, driven by stablecoins and smart contracts, signaling strong fundamentals that could drive its price upward toward year-end.
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