Why Bitcoin's Rally Is Just Getting Started | Tom Lee

— AI is not in a bubble; NVIDIA trades at 27x forward PE, cheaper than Costco and Walmart, with singular scarcity in chip supply and accelerating enterprise adoption of AI solutions.

— The U-Michigan consumer sentiment survey has become politicized and methodologically compromised, with respondents skewing Democratic (65% vs. historical 49%), causing inflated inflation expectations that don't reflect reality.

— Prediction markets like Polymarket outperform traditional forecasts; Polymarket correctly called all 50 states in the 2024 election while professional models failed.

— Crypto breakout products (Tether, Polymarket, Truflation) function better than legacy competitors; Tether generates $20 billion annual profit with 150 employees, outperforming every bank globally.

— Ethereum is experiencing a "supercycle" similar to Wall Street's 1971 moment post-gold standard, as institutions tokenize assets on blockchain; Ethereum could reach $21,000 per token.

— The current stock rally is the most hated in history by institutional money managers, 57% of whom are Democratic and view Trump policies as destabilizing, despite strong corporate earnings and fundamentals.

— Monitor real-time inflation data like Truflation (blockchain-based, updated daily) instead of relying solely on backward-looking CPI; use prediction markets to isolate specific outcomes rather than betting directionally on equities.

— Granny Shots ETF strategy shows stocks performing best when tied to multiple long-term themes (AI, energy security, monetary policy, etc.); diversify across theme intersections rather than single narratives to compound returns.

— Retail investors with permanent capital horizons outperform hedge funds operating on six-week timeframes; position yourself for decade-plus Bitcoin and Ethereum holdings to benefit from volatility and power-law asymmetry.