Tom Lee's Crypto Bull Market Prediction: A New ATH Before January Closes

Fundstrat Global Advisors co-founder Tom Lee is making an aggressive call on the crypto bull market prediction front: Bitcoin could hit a fresh all-time high before this month ends, marking a significant escalation in his already bullish 2026 outlook.

Speaking on CNBC’s Squawk Box early this month, Lee doubled down on his conviction that digital assets have further room to run. “I don’t think bitcoin has peaked yet,” he stated. “While we were too optimistic about achieving new highs before December, I do believe Bitcoin can reach a new all-time high by the end of January 2026.” His stance extends beyond Bitcoin, encompassing Ethereum and other cryptocurrencies that he believes are primed for meaningful upside.

Setting the Stage: Why the Bull Market Prediction Matters

Lee’s crypto bull market prediction arrives after a late-2025 pullback that tested investor patience. At year-end, Bitcoin traded around $88,500—well below his previous August forecast of $200,000 by December 2025. Yet even as that prediction missed, Bitcoin had already touched north of $126,000 in October, establishing a high-water mark that remains just $36,000 away from his current January target.

What makes this bull market prediction particularly intriguing is the timing. Lee frames early 2026 as a critical inflection point—not because markets will suddenly surge, but because the near-term pain will clear the way for sustained gains. “2026 is going to be a year of two halves,” he explained. “The first half of 2026 may be tough as we deal with institutional rebalancing and a strategic reset in crypto markets, but that volatility is exactly what sets the stage for the massive rally we expect in the back half.”

The Bull Market Cycle: Institutional Repositioning as Opportunity

This distinction is crucial to understanding Lee’s bull market prediction framework. The “strategic reset” he references isn’t a warning sign—it’s a digestion phase. After multiple years of outsized gains across risk assets, institutions are rotating their positioning, temporarily pressuring prices.

Lee emphasized that this repositioning reflects normal market mechanics rather than structural weakness. Once institutions complete their rebalancing, the setup for a powerful back-half rally becomes evident. For investors sensitive to near-term volatility, this period represents an opportunity disguised as turbulence.

Ethereum’s Supercycle: A Centerpiece of the Bull Market

The crypto bull market prediction isn’t limited to Bitcoin. Lee is particularly bullish on Ethereum, positioning it as a multi-year expansion opportunity comparable to Bitcoin’s 2017–2021 supercycle. This conviction runs deep—his mining firm, Bitmine Immersion Technologies, has been aggressively accumulating ETH, now holding 4.14 million coins.

“Our belief is that Ethereum is dramatically undervalued,” Lee said, framing ETH as more than a speculative bet. “We believe ETH is entering a supercycle similar to Bitcoin from 2017 to 2021.” He characterized crypto assets as a treasury imperative rather than a peripheral play: “Acquiring an asset that can appreciate by 10 times or more is a strategic necessity for any modern treasury.”

Currently trading near $3,020, Ethereum’s bull case hinges on its utility expansion and the institutional recognition of that value proposition—a cornerstone of Lee’s broader bull market prediction thesis.

Beyond Crypto: A Wall Street Bull Case

Lee’s optimism extends beyond digital assets. He projects the S&P 500 to reach 7,700 by year-end 2026, grounded in 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,” he noted. “This is supported by an EPS story that is far more resilient than the bears are giving it credit for.”

This macro bull case reinforces the crypto bull market prediction by suggesting broad-based asset appreciation driven by genuine fundamental improvements rather than speculative euphoria.

The Road Ahead: Patience Rewarded

Lee’s recent track record illustrates the perils of market timing—his $15,000 ETH forecast for December 2025 proved premature, and his $200,000 Bitcoin target missed by a wide margin. Yet rather than undermining his credibility, this history adds ballast to his current bull market prediction: he acknowledges misfires while maintaining conviction in the underlying thesis.

For those tracking the crypto bull market prediction closely, the January outcome will be telling. Whether Bitcoin breaks above its $126,080 October peak or consolidates will set the tone for how 2026 unfolds. Either way, Lee’s framework suggests that volatility in the first half creates the foundation for meaningful gains in the second half—a bull market prediction rooted not in blind optimism but in market cycle theory and fundamental analysis.