“Comes In Like a Bear…” — Tom Lee’s Surprising Call on March Markets | US Crypto News

Welcome to the US Crypto News Morning Briefingyour essential rundown of the most important developments in crypto for the day ahead. Grab a coffee because while headlines scream war, oil shocks, and AI anxiety, one Wall Street strategist says the panic may already be priced in. Beneath Februarys volatility, a quieter shift could be forming as March tests whether fear has overshot reality. Crypto News of the Day: March May Be the Markets Turning Point, Tom Lee Says As geopolitical tensions rise and investors digest a volatile February, Tom Lee is making a contrarian call: March could mark a decisive rebound across equities and crypto. The Head of Research at Fundstrat Global Advisors believes markets are once again reacting to headlines rather than fundamentals. Despite fears of escalating conflict in the Middle East and renewed oil volatility, Lee argues that history favors resilience, not retreat. I think March is going to likely be an up month, Lee said in a recent television appearance, pushing back against the prevailing caution that followed Februarys weakness. Markets Often Bottom When Fear Peaks Lees thesis hinges on a familiar market pattern: equities tend to sell off into geopolitical buildups, only to recover once uncertainty crests. While the spike in volatility has rattled investors, he does not see a structural deterioration in the US economy. In prior geopolitical episodes, markets have typically stabilized once the worst-case scenarios fail to materialize. The worst of the selloff is going to happen this week, Lee said, suggesting that risk premiums may already reflect elevated anxiety. His view implies that Februarys drawdown was more about sentiment than systemic stress, setting the stage for a March rebound. Oil Shock, But Not a Recession Trigger Energy markets remain central to investor concerns. Rising crude prices threaten to filter through supply chains, pressure consumers, and revive inflation fears. Lee does not dismiss the inflationary impact. Oil, he noted, touches nearly every corner of the global economy. But historically, oil shocks have tended to tip economies into recession only when growth was already fragile. Thats not where we are, he emphasized. Instead of signaling an imminent downturn, Lee sees the oil spike as a temporary price shock. While it may strain sentiment and consumer psychology in an inflation-sensitive environment, he does not believe it will fundamentally derail US growth. A Dovish Fed? Crucially, Lee argues that energy-driven volatility could nudge policymakers in a more accommodative direction. Rather than interpreting higher oil prices as a reason to tighten policy, Lee suggests the Federal Reserve may lean dovish if energy costs threaten to slow activity. This aligns with recent assertions from former Treasury Secretary Janet Yellen. IRAN CONFLICT MAY DELAY FED RATE CUTSJanet Yellen says the Iran conflict is likely to slow U.S. growth and push inflation higher, making the Federal Reserve more cautious on cutting rates.Rising oil pricesespecially if disruption in the Strait of Hormuz persistscould keep *Walter Bloomberg (@DeItaone) March 2, 2026 According to Lee, however, policymakers would likely prioritize cushioning growth risks rather than mechanically reacting to headline inflation. This mirrors recent remarks from economics Professor Steve Hanke in a statement to BeInCrypto. Commodity prices move; those are relative to the prices of other goods, other services, and so forth. But it depends on what the central banks do because all inflation is always and everywhere a monetary phenomenon, Hanke told BeInCrypto. That dynamic, if realized, could provide a supportive backdrop for risk assets into the spring. Crypto in the Final Stages of Bottoming Lee extends his rebound thesis beyond equities to digital assets. He believes software stocks, the Magnificent Seven, and crypto are in the final stages of bottoming. While acknowledging that the market remains in what many describe as a crypto winter, he points to strengthening fundamentals beneath the surface. On Ethereum, Lee argues that expanding tokenization activity, including the steady rollout of tokenized funds, is building long-term value. If economic activity increasingly migrates onto Ethereums network, he believes price appreciation will eventually follow. This is once capital rotates back from traditional hard assets like gold and silver. In short, Lee sees the divergence between price and underlying development as temporary. Growth Scare or Just Risk Premium? Concerns about widening credit spreads and private credit stress have fueled talk of a broader growth scare. Lee remains unconvinced. He points to indicators such as trucking rejection rates as evidence that the economy may be stabilizing or even accelerating, rather than contracting. To him, February felt worse than it was. Markets, down modestly on the month, have been grappling with an elevated risk premium rather than collapsing fundamentals. If Lee is right, March could challenge the prevailing narrative, arriving like a bear, but exiting like a bull. Chart of the Day SP 500 and VIX. Source: TradingView This chart shows the SP 500 (black line) holding relatively stable through the second half of February while the VIX (blue line) experiences sharp swings, including a notable spike toward the end of the month. When the VIX rises, it reflects increasing demand for downside protection, essentially, growing investor anxiety. However, in this case, despite volatility surging, the SP 500 did not collapse proportionally. That suggests the risk premium expanded faster than the actual price damage. Byte-Sized Alpha Heres a summary of more US crypto news to follow today: Core Scientific colocation revenue surges 268% amid mixed Q4 results. Iranian crypto exchanges record $10 million in outflows as geopolitical tensions rise. Credit markets flash warning signs: How it could spill into crypto. Heres how much $1,000 invested in Bitcoin in 2010 is worth today. Three reasons Bitcoin could enter a multi-month medium-term uptrend. PMI stays above 50Is altcoin season waking up in 2026? Crypto Equities Pre-Market Overview CompanyClose As of March 2Pre-Market OverviewStrategy (MSTR)$137.65$132.77 (-3.55%)Coinbase (COIN)$185.24$177.99 (-3.91%)Galaxy Digital Holdings (GLXY)$21.73$20.65 (-4.97%)MARA Holdings (MARA)$9.45$9.03 (-4.44%)Riot Platforms (RIOT)$16.43$15.86 (-3.47%)Core Scientific (CORZ)$16.49$15.99 (-3.03%)Crypto equities market open race:GoogleFinance