Tom Lee, co-founder of Fundstrat Global Advisors, has expressed optimism regarding the future of Bitcoin, indicating that the cryptocurrency has not yet reached its peak. During a recent appearance on CNBC Squawk Box, he suggested that Bitcoin could achieve new all-time highs as early as this month. Lee”s analysis comes in light of a significant price drop that saw Bitcoin fall from an October high of over $126,000 to approximately $88,500 by December 31, according to CoinDesk.
Lee emphasized that the current weakness in the cryptocurrency market should not be viewed as a definitive top. Although he admitted that his previous predictions for a late-2025 breakout were overly optimistic, he maintains that the price movements align with a broader upward trend. He urged investors to remain confident in the potential of Bitcoin, Ethereum, and the overall digital asset market.
Looking ahead, Lee characterized 2026 as a year of dual dynamics for the cryptocurrency sector. He anticipates a volatile first half of the year, primarily influenced by institutional rebalancing and a strategic reset across risk assets. Importantly, he does not see this volatility as a sign of underlying weakness. Historically, such turbulent periods have set the stage for stronger rallies later in the cycle, and Lee predicts a more vigorous surge in the latter half of the year.
Particularly optimistic about Ethereum, Lee described it as undervalued and positioned for a multi-year expansion phase reminiscent of Bitcoin“s performance between 2017 and 2021. Despite previously missing certain price targets, he has reaffirmed his belief in Ethereum through strategic acquisition efforts by his firm, Bitmine Immersion Technologies, viewing these purchases as prudent treasury moves rather than speculative endeavors.
In addition to his positive outlook on cryptocurrencies, Lee extended his bullish perspective to traditional markets, forecasting that the S&P 500 could soar to 7,700 by the end of 2026. He cites robust corporate earnings and productivity gains driven by advancements in artificial intelligence as key factors supporting this projection. Lee also advised that any short-term downturns in the market should be regarded as opportunities rather than warning signs.
