Tom Lee has issued heavy predictions for Bitcoin, Ethereum and the S&P 500 for the rest of the year. Could January be a wildly bullish month?
Tom Lee, the co-founder of Fundstrat Global Advisors, recently shared an optimistic prediction for the new year.
He believes that Bitcoin has not yet reached its peak and expects a massive surge before the end of the month.
While many investors felt discouraged by the price dips late last year, Lee seems confident in the digital asset’s path.
Bitcoin and the Path to New All-Time Highs
The first month of the year tends to bring the markets a fresh perspective. Lee said during an appearance on CNBC’s Squawk Box that the Bitcoin rally is far from over.
He admitted that his previous targets for December were a bit too optimistic. However, he now insists that a new high is likely within the next few weeks.
The market saw a massive pullback recently, and Bitcoin traded around $88,500 on the last day of December. This was a drop from its October high of $126,000 and many traders worry that the momentum has faded.
However, Lee disagrees with this view. He thinks the current price action is just a pause before the next leg up.
With this said, investors should watch for institutional moves this month. Lee expects Bitcoin to break out as these big players finish their year-end rebalancing.
He also pointed to a reset in market leverage that happened in October.
This reset removed much of the risky debt from the system, and a cleaner market usually allows for more sustainable growth.
Why Bitcoin and Ethereum Could Surge Higher
Lee is also very bullish on Ethereum. He told Bitmine shareholders that the second-largest cryptocurrency is “dramatically undervalued.” He also compared its current position to where Bitcoin was back in 2017.
The relationship between these two assets is important and Lee tracks the price ratio of Ethereum to Bitcoin to judge future performance.
If the top coin hits his target of $250,000, he thinks Ethereum could climb to $12,000 or even $22,000. This depends on how much the market begins to value Ethereum as a payment rail.
His firm, Bitmine Immersion Technologies, is even putting its money where its mouth is.
The company recently added more tokens to its balance sheet and now holds over 4 million of them.
Lee sees this as a necessity rather than a simple bet. He believes that holding assets that can grow ten times in value is important for any modern company treasury.
Volatility Expectations for the 2026 Market
With all of the above being said, the road ahead will not be a straight line up.
Lee warned that 2026 will be a year of two halves. He expects the first six months to be quite tough. He says that this period will involve a “strategic reset” in the crypto space.
Institutions are moving money around, and this often causes prices to swing around.
Still, he sees this volatility as a good thing as it sets the stage for a much stronger rally in the second half of the year.
This pattern of a slow start, followed by a fast finish is common in high-growth markets and traders who can stomach the early swings might find great rewards later on.
Related Reading: BitMine buys another $105 Million in ETH To Kick Off The year
Strength in the S&P 500
The bullishness extends beyond crypto. Lee also made one of the most aggressive forecasts for the stock market as well.
He predicted that the S&P 500 will hit $7,700 by the end of the year. This optimism comes from the strength of the US economy.
AI is a major driver of this growth, according to Lee, and companies are using AI more and more to become more productive and profitable.
Lee believes that corporate earnings will continue to be resilient, even if critics remain sceptical.
He also told investors to view any market pullbacks as opportunities to buy.
Source: https://www.livebitcoinnews.com/tom-lee-bitcoin-180k-and-ethereum-12k-heres-what-to-expect/
