Tom Lee Says Bitcoin and Ethereum Haven’t Peaked, Sees New Crypto Highs in Early 2026

Fundstrat Global Advisors co-founder Tom Lee reiterated his bullish outlook on Bitcoin, Ethereum, and U.S. equities, saying the crypto market has not yet reached its peak and could see new all-time highs as soon as January 2026. Speaking on CNBC’s Squawk Box, Lee argued that recent pullbacks across digital assets are part of a healthy reset rather than a sign of long-term weakness.

“I don’t think bitcoin has peaked yet,” Lee said, noting that earlier expectations for a late-2025 top proved premature. While Bitcoin failed to meet his prior $200,000 projection last year, it still reached a record high above $126,000 in October before pulling back. By the end of December 2025, Bitcoin was trading near $88,500, according to CoinDesk data. Despite the volatility, Lee believes Bitcoin, Ethereum, and the broader cryptocurrency market remain positioned for another leg higher.

Lee described 2026 as a “year of two halves” for crypto investors. He expects the first half of the year to be choppy due to institutional rebalancing and strategic repositioning, but views that turbulence as a necessary setup for a powerful rally later in the year. According to Lee, the current consolidation reflects digestion after several years of outsized gains across risk assets, not a breakdown in fundamentals.

Ethereum remains a central pillar of Lee’s crypto thesis. He said ETH is “dramatically undervalued” and entering a multi-year expansion phase similar to Bitcoin’s 2017–2021 cycle. Although his previous $15,000 ETH target for 2025 was not reached, Lee continues to build exposure through Bitmine Immersion Technologies, which now holds over 4 million ether. He framed ETH accumulation as a strategic balance-sheet decision, arguing that assets with potential for 10x appreciation are essential for modern treasuries.

Beyond crypto, Lee also outlined an aggressive equity forecast, projecting the S&P 500 could reach 7,700 by the end of 2026. He cited resilient corporate earnings, AI-driven productivity gains, and underlying U.S. economic strength as key drivers. Overall, Lee emphasized that any near-term pullbacks in crypto or equities should be viewed as opportunities, reinforcing his optimistic outlook for 2026.