Tom Lee, co-founder of Fundstrat, has issued a dual-layered forecast for the cryptocurrency market as we enter 2026. While he maintains a highly bullish short-term outlook for the start of the year, his firm’s internal strategy suggests a more cautious approach for the following months.
Short-Term Optimism: January Surge
Lee anticipates that both Bitcoin and Ethereum will achieve new all-time highs in January. Specifically, he projected that Ethereum could rally into the $7,000 to $9,000 range, despite any brief volatility in the preceding weeks.
Strategic Caution: Mid-Year Pullback
In contrast to the January peak, Fundstrat’s internal 2026 strategy warns of a significant market correction during the first half of the year. The firm has provided defensive price targets for internal clients, suggesting potential pullbacks to the following levels:
This outlook suggests a volatile 2026, characterized by a front-loaded rally followed by a tactical "reset" as the market absorbs previous gains.
