Bitcoin (BTC) Role in the Global Store of Value Market Analyzed by Raoul Pal and Tom Lee

Macro strategist Raoul Pal and Fundstrat co-founder Tom Lee have analyzed Bitcoin's BTC/USD role in the global store value market worth $400 to $500 trillion.

Macro strategist Raoul Pal and Fundstrat co-founder Tom Lee discussed Bitcoin's role in the global store value market, which they estimate to be around $400 to $500 trillion.

Their analysis, shared in a recent interview, delves into why Bitcoin is still in its early stages of growth and has the potential to capture a considerable portion of the vast store-of-value market.

Lee, who previously analyzed the wireless industry boom of the 1990s before launching Fundstrat in 2014, highlighted how Bitcoin's rise aligns with the adoption curves of major technology networks.

"If you just take two factors—the number of wallets and activity per wallet—you can explain over 90% of Bitcoin's growth," Lee stated, attributing the network effects and virality of social media platforms to their ability to generate massive value.

Despite skepticism from institutions, Lee and Fundstrat began covering and backing Bitcoin as early as 2017, when it traded at around $1,000.

"We got famously fired by several well-known hedge funds," Lee mentioned, adding that he believed their negative reaction to his and his team's Bitcoin calls ultimately validated the cryptocurrency's long-term potential.

Both Pal and Lee remain highly bullish on Bitcoin's long-term outlook, with Lee emphasizing key macroeconomic trends such as AI-driven productivity and favorable U.S. demographics as strong tailwinds for BTC adoption.

They estimate that Bitcoin and digital assets could capture a significant share of the multi-trillion-dollar global value market, implying a potential 400-500x growth from today's levels.

"So, if you do the math, the global store-of-value market is about $400 to $500 trillion in equities, bonds, real estate, and hedge funds. If Bitcoin were to take a 10% share of that market, we are looking at a $40 to $50 trillion valuation for Bitcoin," Pal noted.

Their analysis underscores the massive potential that both Pal and Lee see in the cryptocurrency market, particularly for Bitcoin, as it continues to gain traction in the mainstream financial sphere.