Tom Lee, Chairman of BitMine Immersion Technologies and co-founder of Fundstrat Global Advisors, has shared his 2026 outlook for Bitcoin (BTC) and Ethereum (ETH), predicting new all-time highs by year's end following a period of initial market stress. Lee, a noted market bull, detailed his expectations during appearances on CNBC and The Master Investor Podcast.
Lee anticipates a challenging start to 2026, warning investors to prepare for a "painful decline" in both cryptocurrency and stock markets. He attributes this potential downturn to geopolitical tensions, unfavorable macroeconomic factors, tariffs, and political divisions. This initial phase, he suggests, could prevent Bitcoin and the broader crypto market from achieving a sustainable rise early in the year.
However, Lee forecasts a strong recovery later in 2026, drawing parallels to the positive trends observed in 2025. He specifically stated, "Bitcoin could reach a new all-time high this year; at the same time, we may take a more positive stance on Ethereum and expect Ethereum to outperform Bitcoin." This new peak would signal a full recovery from the shock of massive leveraged liquidations that occurred in October 2025.
Lee also commented on the recent divergence between cryptocurrencies and gold, attributing it to repeated "delegitimization cycles" that weaken market makers, whom he describes as the "central bank of cryptocurrencies." He believes this instability could persist until corporate participation in the crypto market expands.
The forecast hinges on several supportive factors materializing in the latter part of the year. Lee highlights the expected maturation of Bitcoin ETFs, improved regulatory clarity, and growing institutional investment as key drivers that will counterbalance the early-year challenges and fuel the recovery.
