Tom Lee Expects Bond Yields To ‘Normalize’ Within 6 Months – Says Crypto, Tech Stocks Signal Easier Financial Conditions Ahead

• Lee said a yield below 5% would be "really positive for risk-on" and argued that tech stocks and crypto are already anticipating easier financial conditions.

• The Bitmine chairman reiterated his forecast for the S&P 500 to reach roughly 8,200 to 8,400 by year-end while acknowledging the possibility of a mid-October-to-midterm correction.

• He added that Bitcoin's four-year cycle bottom is occurring now and expects Bitcoin to finish the year above $100,000.

Fundstrat's Tom Lee on Monday said he expects U.S. bond yields to "normalize" over the next six months as inflation pressures ease, adding that strength in technology stocks and crypto is already signaling easier financial conditions ahead.

"I think there are, over the next six months, softer readings on inflation," Lee said in his interview with CNBC. According to him, that should allow the Federal Reserve to "walk back from its hawkishness," and bond yields to "actually sort of normalize because the inflation uncertainty starts to ease."

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Lee said the 10-year Treasury yield could fall below 5% within six months. "I think anything under 5% would be interpreted by markets as really positive for risk-on," he said.