Tom Lee's Market Predictions for 2026: Bitcoin, Ethereum, and Beyond

Fundstrat Global Advisors co-founder Tom Lee has emerged as one of the most vocal bullish voices in financial markets, recently reiterating his conviction that Bitcoin still has significant upside potential. During a CNBC appearance earlier this month, Lee doubled down on his outlook that digital assets and equities are poised for further appreciation in 2026, despite acknowledging near-term market volatility. His latest tom lee predictions underscore a broader thesis about market cycles and institutional positioning that could shape sentiment across crypto and traditional markets.

“I don’t think Bitcoin has peaked yet,” Lee stated, emphasizing that the cryptocurrency remains positioned for a breakthrough. “We were overly optimistic about hitting the all-time high before December, but Bitcoin can reach a new all-time high by the end of January 2026. We should not assume that Bitcoin, Ethereum, or other cryptocurrencies have already plateaued.”

Bitcoin’s Path to New Records

Lee’s conviction arrives after a pullback across digital assets in late 2025. Bitcoin currently trades around $88,330, having reached an all-time high of $126,080 in October 2025. While the cryptocurrency fell short of Lee’s earlier $200,000 prediction for the end of 2025, the analyst maintains that the bull market remains intact. The January timeframe represents a critical inflection point in his view—one that could validate the broader crypto bull thesis.

This outlook reflects a notable escalation in Lee’s long-running bull case. The analyst believes the current market environment presents a unique opportunity rather than a structural breakdown. Price pullbacks, he argues, are natural components of longer-term expansion cycles, not indicators of terminal weakness in the asset class.

2026: A Year of Two Halves

Tom Lee predictions for 2026 paint a picture of bifurcated market dynamics. The analyst forecasts volatility in the first half of the year, driven by what he calls “institutional rebalancing” and a “strategic reset” across crypto markets. However, this turbulence is positioned not as a warning but as a precursor to sustained gains.

“2026 is going to be a year of two halves,” Lee explained. “The first half may be tough as institutional rebalancing and strategic reset play out, but that volatility sets the stage for the massive rally we expect in the second half.”

This framing is critical to understanding Lee’s thesis. He views the reset not as evidence of structural weakness but rather as a digestion phase following multiple years of outsized gains across risk assets. In other words, consolidation is healthy—not alarming—in the context of longer-term expansion.

Ethereum’s Supercycle Thesis

Beyond Bitcoin, Lee has positioned Ethereum as entering a multi-year expansion phase reminiscent of Bitcoin’s 2017-2021 trajectory. Ethereum currently trades near $2,960, having reached a 2025 high of $4,950. Last year, Lee projected an all-time high of $15,000 by December—a forecast that did not materialize. Nevertheless, he remains bullish on the asset.

His continued conviction is underscored by actions from Bitmine Immersion Technologies, the crypto mining firm with which Lee is affiliated. The company recently increased its Ethereum holdings to 4.14 million tokens, framing the acquisition as a strategic balance-sheet imperative rather than a speculative bet.

“Our belief is that Ethereum is dramatically undervalued,” Lee stated. “ETH is entering a supercycle similar to Bitcoin from 2017 to 2021. Acquiring an asset that can appreciate by 10 times or more is a strategic necessity for any modern treasury.”

This positioning suggests Lee views Ethereum not merely as a trading vehicle but as essential infrastructure for institutional portfolios navigating AI and blockchain innovation.

Equity Markets and Economic Fundamentals

Tom Lee predictions extend beyond digital assets to traditional equity markets. He projects the S&P 500 will reach 7,700 by the end of 2026—among Wall Street’s most aggressive forecasts. This outlook rests on two pillars: resilient corporate earnings and AI-driven productivity gains.

“If you look at the fundamental strength of the U.S. economy and the AI-driven productivity gains, we are looking at a path to S&P 7,700 by year-end 2026,” Lee noted. “This is supported by an earnings story that is far more resilient than the bears are giving it credit for.”

Fourth-quarter earnings from major tech firms provide some support for this thesis. Both Microsoft and Meta signaled continued strong spending on AI infrastructure and development, with Meta projecting sharply elevated capital expenditure in 2026 to fund its Super Intelligence initiatives. Such corporate commitment suggests sustained demand for productivity tools and infrastructure—a tailwind for equity valuations.

The Broader Market Narrative

Lee’s consistent positioning across crypto, equities, and macro trends reflects a coherent worldview: markets are digesting consolidation before embarking on new expansion phases. Pullbacks and volatility are features, not bugs, in healthy bull markets. This narrative has attracted both supporters and skeptics over the years, particularly given past predictions that fell short of materialization.

Nevertheless, tom lee predictions continue to command attention across financial media and the crypto industry, influencing sentiment among retail and institutional investors alike. Whether 2026 validates his bullish thesis or delivers another round of humbled forecasts remains to be seen—but his market outlook clearly articulates one credible vision of how crypto and equity markets may evolve in the year ahead.