Bitcoin Could Become Wall Street’s Most Traded Asset, According to Tom Lee

Fundstrat's Tom Lee believes Bitcoin could emerge as Wall Street’s most lucrative asset as the U.S. moves toward recognizing BTC as part of its financial reserves.

Lee likened the idea of a Strategic Bitcoin Reserve to the U.S. petroleum reserve, emphasizing how oil markets operate. He pointed out that for every dollar spent on actual oil purchases, more than $400 is used for speculation. This heavy market activity makes it crucial for nations to maintain oil reserves to stabilize supply and manage price fluctuations.

Applying the same logic to Bitcoin, Lee suggested that if BTC gains widespread adoption as a reserve asset, its trading volume could far exceed its market value.

He argued that if oil speculation is 400 times the value of its physical market, Bitcoin—given its digital and borderless nature—could see even greater levels of trading activity. As a result, major financial institutions like Goldman Sachs and JPMorgan Chase could find BTC to be their most profitable financial instrument.

Lee also noted that Bitcoin’s blockchain offers powerful data security benefits. By storing even a small fragment of data on the blockchain, any attempt to alter information becomes immediately detectable. This feature could encourage banks and institutions to leverage BTC for securing sensitive records, further cementing its role in the financial system.

With major players like Citadel potentially entering Bitcoin trading, Lee believes the asset could become one of the most actively traded financial products. If oil markets see speculation at 400 times their value, Bitcoin’s highly liquid and decentralized nature could push its trade volume even higher, making it a dominant force in global finance.