Prominent crypto analyst Tom Lee of Fundstrat Global Advisors has suggested that Bitcoin could be poised for a significant price rally. Lee's assessment is based on current market conditions, where leverage in crypto markets has largely been cleared out and Bitcoin's open interest has fallen to notably low levels. He argues this environment could trigger a strong upward price movement.
Open interest, which measures the total number of outstanding Bitcoin options contracts, has dropped to approximately 316,000 BTC as of January 13, 2026. This marks the lowest level seen in the past four years. A low open interest indicates traders are not heavily using leverage, which reduces overall market risk and suggests a period of risk aversion following recent volatility.
Bitcoin's price was hovering around $91,200 at the time of the report, representing an 8% increase since the start of the year but still below previous highs. Analysts note that the combination of reduced leverage and limited open interest could set the stage for a sharp rally, as the market has shed excessive speculative positions.
However, the report also highlights a significant caveat: the market's thin liquidity. With lower trading volumes, even small buy or sell orders could move the price by 5% or more, increasing potential volatility. Traders are advised to closely monitor support levels and key market metrics.
Lee's forecast has raised investor expectations, but experts emphasize that risk management remains critical. While lower systemic risk is positive, the heightened impact of smaller orders means the market is susceptible to large swings. Understanding these dynamics—low leverage creating potential for a rally, but low liquidity amplifying price moves—is essential for navigating the current landscape.
