A huge untapped market adopting Bitcoin — Tom Lee points out a 200x scalability potential

There is a number that symbolizes the fact that the cryptocurrency market is still in its early stages. Currently, there are about 4 million Bitcoin wallets holding over $10,000, while the number of global pension and securities accounts holding the same or more amounts reaches approximately 900 million. Fundstrat co-founder Tom Lee focuses on this adoption gap because it conceals the true growth opportunity in the market.

Understanding the Potential Scale in Numbers

This comparison is startling. If Bitcoin were to occupy a meaningful position within traditional investment portfolios, the target market would expand by over 200 times from its current size. From 4 million to 900 million—this gap is not just a statistic but vividly illustrates the early stage of market penetration.

For most investors worldwide, Bitcoin remains a peripheral asset. Despite numerous headlines, gradual institutional entry, and a developing regulatory environment, cryptocurrencies are not yet central to mainstream investors’ portfolios. The 4 million wallets with over $10,000 may seem substantial in absolute terms. However, when compared to the universe of traditional investment accounts holding similar or greater assets, the adoption gap becomes glaringly obvious.

Rapidly Closing Adoption Barriers

The reason for this disparity is clear. Until a few years ago, gaining exposure to Bitcoin required navigating unfamiliar exchanges and custody solutions. For many investors with retirement accounts, the barrier to entry was extremely high.

Regulatory uncertainty also posed a hurdle. Risk-averse investors and their advisors had to be cautious. Without accessible investment vehicles like physically-backed Bitcoin ETFs, cryptocurrencies were outside the scope of traditional portfolios.

But the situation is changing rapidly. Physical Bitcoin ETFs have emerged, enabling exposure through conventional brokerage accounts. Major custodians and platforms catering to high-net-worth individuals have integrated cryptocurrency offerings. Regulatory frameworks have matured across advanced markets.

Investors holding assets with giants like Fidelity or Schwab can now allocate to Bitcoin as easily as to any other asset class. Operational and compliance challenges are less daunting than before, making it more feasible for advisors to recommend cryptocurrency allocations.

The IRA Market—Trillions of Dollars of Dormant Demand

Tom Lee specifically mentioned IRAs (Individual Retirement Accounts) because there is enormous latent opportunity here. Over $35 trillion alone is held in retirement accounts in the U.S. This pool, even with a small percentage allocated to Bitcoin, could generate significant demand.

Self-directed IRAs have long technically permitted cryptocurrency investments, but the procedures were complex and impractical for most investors. The advent of physical ETFs has transformed this landscape. Investors can now access Bitcoin within existing retirement account structures through familiar investment channels.

Tax advantages of retirement accounts could be especially beneficial for volatile assets. Bitcoin with long-term appreciation potential is increasingly recognized as suitable for accounts with multi-decade horizons.

Intergenerational Gaps and Accelerating Adoption

Young investors are more receptive to cryptocurrencies, but their account balances tend to be small. Conversely, the 900 million accounts holding over $10,000 are concentrated among older generations with limited familiarity with digital assets. This generational divide accelerates the adoption gap.

However, historical patterns of technological adoption suggest that once critical mass is reached, the shift to mainstream can occur at a pace far exceeding linear forecasts. As Bitcoin transitions from early adopters to the early majority, the pace of new wallet creation could surge dramatically.

Nonetheless, accelerated adoption is not guaranteed. Regulatory setbacks, security incidents, or prolonged bear markets could slow or reverse momentum. The potential for a 200-fold increase is a theoretical maximum under ideal conditions and does not guarantee reaching that level.

Supply Constraints and the Amplification Effect on Price

Even a partial narrowing of the adoption gap would have a significant impact on Bitcoin’s price. Since most Bitcoin is held by long-term investors, increased marginal demand would translate directly into price appreciation.

The reflexive nature of the cryptocurrency market could amplify this dynamic. Rising prices attract attention, which spurs further adoption, increasing demand, and driving prices higher—creating a cycle with considerable room to continue.

Given the current BTC price at $95.29K (as of January 2026) and the number of addresses holding coins reaching 55,330,440, it’s clear that as barriers to entry decrease, this positive feedback loop begins to function more effectively.

The Need for a Long-Term Perspective

Tom Lee acknowledges short-term volatility but maintains a consistently bullish long-term outlook on Bitcoin. His current comments come during a period of recent price correction and market fear.

This timing is deliberate, encouraging investors not to lose sight of the structural growth potential amid challenging market conditions. While the adoption gap won’t close overnight, as infrastructure barriers continue to diminish, it won’t remain open forever. The market is steadily, albeit gradually, evolving.