Key Takeaways
- Tom Lee believes increasingly capable AI systems and robots will create new demand for crypto.
- Lee identified Ethereum as the most important Layer 1 for the AI economy.
- Veteran trader Peter Brandt expects an “investable low” in September or October before a potential 500,000 peak in 2029.
Tom Lee has placed AI at the center of his latest crypto bull case, arguing that blockchains will become more important as AI agents and robots acquire greater autonomy.
In an Aug. 18 thread on X, the Fundstrat co-founder and BitMine chairman also endorsed BlackRock’s bullish long-term assessment of Bitcoin while making an even stronger argument for Ethereum.
The comments have put Peter Brandt’s July forecast of a $500,000 Bitcoin peak back into the spotlight as his projected market-bottom window approaches.
Tom Lee Says AI Will Make Ethereum More Important
Lee believes AI capabilities are following a steep S-curve, allowing software agents to reason, coordinate, and potentially act with decreasing human supervision.
He argued that smart contracts could “keep humans in the loop” by creating transparent rules governing what autonomous systems can own and control.
Lee extended the thesis to robotics, pointing to rapidly improving humanoid machines that can already run and jump beyond ordinary human limits.
If robots eventually conduct transactions, blockchains could provide a settlement layer to record and restrict their actions.
That makes Ethereum an important “downstream story” for AI, according to Lee.
The argument builds on a previous BitMine chairman’s presentation, in which Lee described blockchain as a protective barrier between humans and increasingly autonomous AI agents.
Under that scenario, Ethereum would provide programmable property rights and settlement infrastructure for a machine-to-machine economy.
Tom Lee Sees Ethereum Price Setting Up for a Breakout
Lee’s AI thesis is accompanied by an increasingly bullish outlook for Ethereum’s price.
In BitMine’s Aug. 17 update, the Fundstrat strategist said he was encouraged by Ethereum’s improving performance relative to Bitcoin.
“We are encouraged to see the ETH/BTC ratio at 0.02994 and rising,” Lee said.
According to Lee, the ratio has broken above the long-term downward trend that has defined Ethereum’s performance relative to Bitcoin over the past several years.
Lee argued that previous periods of Ethereum outperformance were driven by new sources of network demand.
Initial coin offerings supported the 2017–2018 cycle, NFTs and decentralized applications powered the 2020–2021 advance, and stablecoin adoption became a major catalyst in 2025.
In July, he predicted Ethereum would climb above $5,000 before the end of 2026, alongside Bitcoin returning to six figures.
With ETH trading near $1,900, reaching Lee’s target would require an advance of approximately 163%.
BlackRock Says Bitcoin’s Investment Case Remains Intact
Tom Lee introduced his Ethereum argument while endorsing BlackRock’s latest Bitcoin report.
The asset manager examined Bitcoin’s roughly 50% decline from its October 2025 high and attributed the correction primarily to leveraged liquidations and a rotation toward AI-related investments.
However, BlackRock said Bitcoin’s core investment case as an “emerging global monetary alternative and unique portfolio diversifier remains unchanged.”
The firm said a measured allocation of between 1% and 2% to Bitcoin could remain compelling for some portfolios.
Peter Brandt Predicts a 500K Bitcoin Price
While Lee and BlackRock remained bullish, veteran trader Peter Brandt recently went so far as to predict Bitcoin’s price would reach between $300,000 and $500,000.
Brandt’s projection has resurfaced as September approaches — the start of the period when he expects Bitcoin to present a long-term buying opportunity.
The trader based his forecast on Bitcoin’s recurring market cycles, which he said were among the most consistent he has observed during the asset’s 15-year trading history.
Brandt said “an investable low is scheduled for Sep/Oct 2026” if Bitcoin continues following that pattern.
If the pattern survives, he expects the subsequent bull market to culminate “between $300k and $500k in Sep/Oct 2029.”
From Bitcoin’s current level near $64,000, those targets would represent an increase of up to eight times.
The timing broadly corresponds with Bitcoin’s four-year halving cycle.
The next reduction in mining rewards is expected in 2028, while previous cycle peaks have generally occurred around 12 to 18 months after a halving.
Brandt Has Called Major Bitcoin Moves Before
Brandt’s forecast has attracted additional attention because several of his previous Bitcoin calls have proven broadly correct.
In January, the trader predicted Bitcoin could fall into the 58,000–62,000 range if bearish technical conditions continued.
Bitcoin later entered that range during its correction, then recovered toward $64,000.
Brandt’s best-known crypto call came in January 2018, when Bitcoin was still trading above $10,000.
After identifying a double-top formation, he warned that BTC could decline below $4,000.
Bitcoin ended 2018 beneath that level following one of the deepest bear markets in its history.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
