Fundstrat’s Lee sees 'painful' start to 2026 before late-year rebound

Fundstrat’s Tom Lee, who is also the chair of Ethereum treasury firm BitMine, still expects Bitcoin to set a new high this year.

Fundstrat head of research Tom Lee has warned investors to brace for a “painful decline” across the crypto and stock markets in 2026 amid geopolitical tension, before a recovery towards the end of the year.

In an interview on Tuesday on The Master Investor Podcast with Wilfred Frost, Lee said 2026 will mirror 2025 with tailwinds for the blockchain and AI industries, but said risks from tariffs and political divides would hold the market back from a sustained rally initially.

Lee estimated a stock market correction of 15% to 20% this year, but said: “I think we really finish the year strong,” in part due to a more dovish US Federal Reserve and the conclusion of quantitative tightening last year.

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