Tom Lee Unfazed by Crypto Pullback: Bitcoin Set for New Highs, Ethereum Poised for ‘Supercycle’ in 2026
Despite a significant market correction towards the close of 2025, Tom Lee, co-founder of investment research firm Fundstrat and widely recognized as a “Wall Street Oracle,” remains staunchly bullish on the cryptocurrency market’s prospects for 2026. Lee asserts that Bitcoin’s ascent is far from over, confidently predicting new all-time highs could emerge as early as January.
Lee’s historical predictions have often been characterized by their audacious and aggressive nature. In August of the previous year, he famously projected Bitcoin would surge past the $200,000 threshold by the end of 2025. While Bitcoin did reach an impressive peak of approximately $126,000 in October, its momentum ultimately waned, concluding the year around the $88,500 mark.
Addressing the disparity between his previous forecast and the market’s reality, Lee appeared on CNBC’s “Squawk Box” on Monday, where he stated:
“We acknowledge that our earlier anticipation of Bitcoin conquering higher ground by December was perhaps overly optimistic. However, I remain convinced that Bitcoin’s price has not yet reached its apex. In fact, we anticipate the opportunity to witness Bitcoin establish new highs before the conclusion of January 2026.”
Lee underscored the importance for investors to resist the assumption that Bitcoin, Ethereum, or other digital assets have already peaked. He envisions 2026 unfolding in two distinct phases. The first half is expected to be more volatile, potentially marked by turbulence stemming from institutional portfolio rebalancing. Yet, he maintains an overwhelmingly bullish structural outlook, forecasting a robust strengthening in the latter half of the year.
“The year 2026 will be defined by two profoundly different halves. The initial six months might prove challenging as we navigate institutional recalibrations and a ‘strategic reset’ within the cryptocurrency landscape. However, this very volatility is crucial for setting the stage for what we expect to be an ‘epic rebound’ in the second half.”
He further clarified that this anticipated “reset” should not be misconstrued as a signal of inherent structural weakness. Instead, he views it as a necessary period of digestion and consolidation for risk assets, following several years of exceptional gains.
Ethereum: On the Cusp of a “Supercycle”
Among the diverse array of cryptocurrencies, Tom Lee expresses particular enthusiasm for Ethereum. He posits that Ethereum is currently embarking on a multi-year expansion phase, predicting its trajectory could mirror Bitcoin’s protracted bull run experienced between 2017 and 2021.
It’s worth noting that Lee had previously forecasted Ethereum would reach $15,000 by December 2025. The actual high achieved was $4,830, with Ethereum settling around $3,300 at year-end. Despite this, his conviction remains unwavering in his latest commentary:
“We firmly believe Ethereum is significantly undervalued. Our conviction is that Ethereum is now entering a supercycle, akin to the explosive growth period Bitcoin witnessed from 2017 to 2021.”
Coinciding with these bullish remarks, Lee’s cryptocurrency reserve company, Bitmine, has been actively increasing its Ethereum holdings, which now stand at an impressive 4.14 million ETH. For Lee, holding Ethereum transcends mere speculation; it represents a strategic imperative for modern corporate asset allocation.
“For any forward-thinking corporate finance department, the allocation of assets possessing 10x appreciation potential is, by its very nature, a strategic necessity.”
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