Tom Lee Sees a 'Really Bullish' Year Ahead for Crypto as Bitcoin Trades 39% Below Record

Tom Lee, co-founder and head of research at Fundstrat Global Advisors, says the cryptocurrency market has already endured its worst moment and is poised for a sustained rally over the coming year.

In an interview with Wealthion published Friday, Lee argued that the next 12 months will be "a really bullish period for crypto," citing the massive deleveraging that followed last October's tariff shock and the early stages of a new four-year cycle. Bitcoin was trading near $77,315 at the time of the interview, roughly 39% below its record above $126,000 set days before the crash.

The strategist's optimism rests on two pillars. The first is that the pain has already occurred. On October 10 last year, a threat to impose 100% tariffs on Chinese goods triggered the largest liquidation event in crypto history. More than $19 billion in leveraged positions vanished in a single day. Lee said the forced unwinding cleared out a substantial portion of borrowed capital, and using the four-year cycle that many traders rely on for market timing, next month could mark the bottom of this cycle.

"I think it's going to be a really bullish period for crypto for the next 12 months," he said.

Prices, however, have not yet recovered. Bitcoin remains well below its pre-crash high, while Ethereum has gained 3.2% over 24 hours to about $2,533. Lee also expressed a positive outlook for ether, pointing to several market and industry trends that could strengthen its position.