Fundstrat co-founder and Bitmine Immersion Technologies CEO Tom Lee argued in early October 2026 that American small-cap stocks are significantly undervalued, describing the Russell 2000 as a “coiled spring”. According to JPMorgan Equity Strategy data cited by Lee, short positions against Russell 2000 companies are in the 99.8th percentile, with median short interest above 8% of outstanding shares. Lee believes this crowded bearish positioning could fuel a rebound if rising prices force short sellers to cover.
Fundstrat expects softer US employment data and lower Treasury yields to support equities, forecasting the 10-year Treasury yield to fall below 5%. The firm maintains its S&P 500 target of 8,200 to 8,400 points, citing third-quarter earnings-per-share growth approaching 30% and declining valuation multiples. Lee’s equity outlook also includes a potential rotation into smaller cryptocurrency assets, starting with Russell 2000 strength and eventually reaching lower-capitalization digital tokens as Bitcoin dominance gives way to broader market participation.
Speaking at Token2049, Lee said the crypto market is at the beginning of a “super cycle” and predicted that most assets managed in traditional finance could be tokenized on blockchain rails within the next 10 years. He highlighted that BlackRock, JPMorgan, and Robinhood are already developing tokenization-related infrastructure on Ethereum. Lee’s firm, Bitmine Immersion Technologies, reportedly holds more than 6 million ETH, representing approximately 4.9% of Ethereum’s total supply. The pace of this tokenization shift is expected to depend on regulation, institutional adoption, and continued technological advances.
