TLDR
- Tom Lee stated that Bitcoin has not peaked and may reach a new all-time high by the end of January 2026.
- He acknowledged missing his earlier prediction that Bitcoin would surpass $200,000 before the end of 2025.
- Lee forecasted a volatile start to 2026 due to institutional rebalancing and strategic market adjustments.
- He expressed strong confidence in Ethereum, describing it as undervalued and entering a multi-year expansion phase.
- Bitmine Immersion Technologies, Lee’s crypto mining firm, has increased its Ether holdings to 4.14 million.
Tom Lee expects Bitcoin to reach a new all-time high by January’s end, while forecasting a volatile year ahead; speaking on CNBC’s Squawk Box Monday, the Fundstrat Global Advisors co-founder reiterated confidence in crypto markets and equities, despite falling short on earlier price predictions and acknowledging near-term challenges for institutional investors.
Bitcoin Price Could Break Records This Month
Tom Lee said Bitcoin has not yet peaked and could surpass its October all-time high before January closes.
“We were overly optimistic about achieving the high-water mark before December,” Lee said, while reaffirming a bullish stance on Bitcoin’s future.
He pointed to a potential breakout in January, following a widespread crypto pullback during late 2025. Bitcoin reached $126,000 in October but fell back to around $88,500 by December 31, according to CoinDesk data.
Lee’s August forecast had predicted a rise past $200,000 before year-end, which Bitcoin did not achieve. Still, Lee believes Bitcoin will rebound quickly and may test new highs within weeks.
Ethereum Set for Multi-Year Expansion, Says Lee
Lee remains confident in Ethereum’s outlook and compares its current stage to Bitcoin’s 2017 to 2021 expansion phase. He stated that Ethereum is entering a supercycle and is undervalued based on its long-term potential and current price.
Despite predicting Ether would reach $15,000 in 2025, the cryptocurrency peaked at $4,830 and traded at $3,300 in December. Lee’s firm, Bitmine Immersion Technologies, has increased its ETH holdings to 4.14 million in response.
“Acquiring an asset that can appreciate by 10 times or more is a strategic necessity,” Lee said during the appearance.He emphasized ETH’s role in corporate balance sheets, arguing it’s no longer just a speculative investment.
Institutional Reset and Market Volatility Expected in 2026
Tom Lee forecasted that 2026 will bring two contrasting halves for crypto and equity markets. He warned that the first half could be difficult due to institutional rebalancing and a broader market reset.
However, he believes this phase is healthy and necessary following years of growth in digital assets. Lee expects the volatility to set up conditions for a strong second-half recovery across crypto assets.
He clarified the reset phase is not due to structural weakness but a natural adjustment process. “2026 is going to be a year of two halves,” Lee said, pointing to a stronger outlook post-rebalancing.
Equities Outlook Remains Aggressive Through 2026
Lee also forecasted strong performance for the broader equity markets, driven by corporate earnings and AI-driven productivity.
He predicted the S&P 500 would reach 7,700 by the end of 2026, defying bearish expectations. He said strong fundamentals in the U.S. economy support this aggressive projection.
According to Lee, pullbacks in equities should be seen as entry opportunities instead of warnings. “There’s a lot to be optimistic about in 2026,” he said, reinforcing a long-term positive outlook.
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