Tom Lee: Iran-Related Volatility Is A 'Risk Premium', But The Bottom Is Close

Fundstrat’s Tom Lee says crypto could be in its final stages of weakness, or may have already bottomed, despite ongoing geopolitical tensions.

In a Monday interview on CNBC, Lee described recent volatility as a typical "risk-premium expansion," not a structural breakdown. He expects markets to rebound into late March and potentially strengthen through April.

While "crypto winter" sentiment lingers, Lee remains bullish on Ethereum, pointing to strong network fundamentals and accelerating tokenization activity. He argues that long-term price action should ultimately track usage growth.

Lee also highlighted that Bitmain Immersion Technologies has been accumulating roughly $50 million to $100 million worth of ETH weekly, with its cash balance reportedly exceeding $800 million.

Lee suggests that that software, large-cap tech, and crypto could help lead markets higher into April as sentiment stabilizes.

Stocks should finish March higher despite geopolitical concerns, including tensions around the Strait of Hormuz. Historically, he noted, markets tend to sell off ahead of conflict but stabilize once uncertainty peaks.

He added that the recent pullback in software and AI stocks appears overdone, with many names retracing to April 2025 levels.

Oversold sectors, including the "Mag-7" tech giants, could mean-revert, helping lift equities and crypto into April.

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