Tom Lee: The Crypto Market May First Decline Then Rise in 2026, with a Possible Recovery by Year-End

Fundstrat Head of Research Tom Lee stated that in 2026, the cryptocurrency and stock markets may experience a "painful decline" due to geopolitical tensions, but he expects a rebound by the end of the year. In an interview with The Master Investor Podcast, he said that 2026 may be similar to 2025, with the blockchain and AI industries continuing to benefit, but risks from tariffs and political divisions could limit the initial market rally. Lee expects the stock market to correct by 15%-20% this year, but anticipates a strong finish by year-end due to the Federal Reserve's dovish stance and the end of quantitative tightening. He also mentioned that White House policies could impact industry performance and predicted that bitcoin will reach a new all-time high this year, though he did not mention his previous $250,000 target.