Tom Lee, co-founder and head of research at Fundstrat Global Advisors, believes Bitcoin has significant room to run. 

Speaking on CNBC's Squawk Box on Monday, Lee predicted that Bitcoin could reach a new all-time high by the end of January 2026, despite a pullback in digital asset prices toward the close of 2025.

"I don't think Bitcoin has peaked yet," Lee said during the interview. "We were overly optimistic about achieving the high-water mark before December, but I do believe that Bitcoin can hit a new all-time high by the end of January 2026."

Bitcoin reached an all-time high above $126,000 in October 2025, but closed the year trading around $88,500. Lee's latest call positions January as a potential ‘breakout month’ and represents a continuation of his long-standing bullish stance on digital assets.

Why Tom Lee's Outlook Carries Weight

Lee is one of the most recognized macro strategists on Wall Street, with nearly 30 years of experience in equity research. Before founding Fundstrat in 2014, he served as chief equity strategist at J.P. Morgan from 2007 to 2014. He has been ranked consistently by Institutional Investor throughout his career and was among the first major Wall Street strategists to offer formal Bitcoin research coverage to institutional clients.

His forecasts often draw attention from both traditional finance and the cryptocurrency industry. In August 2025, Lee had predicted Bitcoin would surpass $200,000 before the end of that year. While that target was not reached, Bitcoin did establish new highs earlier in the fall.

A Volatile But Constructive Year Ahead

Lee cautioned that 2026 is likely to be a year of two distinct phases. 

He expects near-term turbulence in the first half, driven by institutional repositioning and what he described as a "strategic reset" in crypto markets. However, he views this period as setting the stage for sizable growth in the second half of the year.

"The first half of 2026 may be tough as we deal with institutional rebalancing," Lee noted, "but that volatility is exactly what sets the stage for the massive rally we expect in the back half."

According to Lee, the reset should not be interpreted as a sign of structural weakness. Instead, he characterized it as a digestion phase following multiple years of substantial gains across risk assets.

Ethereum is “Dramatically Undervalued”

Lee also expressed strong conviction in Ethereum, suggesting the asset is entering a multi-year expansion phase. He drew comparisons to Bitcoin's growth trajectory between 2017 and 2021, calling Ethereum "dramatically undervalued." 

Beyond crypto, Lee shared one of the more aggressive equity market forecasts currently on Wall Street, projecting the S&P 500 to reach 7,700 by the end of 2026. He pointed to strong corporate earnings and productivity improvements driven by artificial intelligence as key factors supporting that outlook.

"There's a lot to be optimistic about in 2026," Lee concluded.

Sources

• CNBC: There's a lot to be optimistic about in 2026, says Fundstrat's Tom Lee
• CoinDesk: Tom Lee Calls for a New Bitcoin ATH in January, While Warning of a Volatile 2026
• Fundstrat: Meet Our Team

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