Fundstrat Global Advisors co-founder Tom Lee said Bitcoin may still have room to run in the opening weeks of 2026, arguing that the market has not yet reached a cyclical peak. Speaking in an interview on January 5, Lee said he expects Bitcoin to push to a new all-time high before the end of January, despite recent pullbacks across digital assets.
Bitcoin has rebounded from the late-2025 weakness and was trading near $94,000 on Monday, supported by renewed institutional positioning and improving sentiment toward risk assets. Lee framed the recent consolidation as a pause rather than a reversal, noting that similar patterns have historically preceded renewed upside during early-year periods.
Volatility Expected before Second-Half Recovery
While near-term momentum appears constructive, Tom Lee warned that 2026 is unlikely to be a smooth ride for crypto markets. He described the year as a tale of two halves, with institutional rebalancing and profit-taking likely to pressure prices during the first several months.
According to Lee, large allocators are reassessing exposure after several years of outsized returns, creating short-term volatility even as longer-term fundamentals remain intact. He said this reset phase should not be mistaken for structural weakness, but rather a digestion period that could lay the groundwork for stronger performance later in the year.
The view aligns with broader macro uncertainty as investors weigh slowing global growth, shifting central bank policy paths, and elevated geopolitical risk. Within that backdrop, Lee argued that crypto remains increasingly intertwined with traditional markets, making short-term drawdowns more sensitive to cross-asset positioning.
Ether Conviction and Equity Optimism
Lee reiterated a bullish stance on Ethereum, calling it materially undervalued relative to its network activity and long-term adoption potential. He pointed to continued accumulation by corporate and treasury-focused entities as evidence that Ether is transitioning from a speculative asset to a balance-sheet consideration.
From a competitive standpoint, Lee suggested Ethereum could benefit disproportionately if institutional demand for yield-bearing and programmable blockchain infrastructure continues to expand. He characterized Ether exposure as a strategic allocation rather than a tactical trade, particularly for firms seeking asymmetric upside over multi-year horizons.
Beyond digital assets, Lee outlined one of the more optimistic equity forecasts on Wall Street, projecting the S&P 500 could reach 7,700 by the end of 2026. He attributed the outlook to resilient corporate earnings, productivity gains tied to artificial intelligence, and sustained capital investment despite tighter financial conditions.
Lee acknowledged that market pullbacks are likely across both crypto and equities, but maintained that volatility should be viewed as an opportunity. In his view, the combination of technological innovation and institutional capital flows continues to support a constructive medium-term outlook, even if the path forward proves uneven.