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Fundstrat’s Tom Lee has forecasted a near-term market reversal in the recent bearish trends for both crypto and stock markets.
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Large-cap tech, software, and cryptocurrencies will lead the rally.
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Lee’s forecast was bombarded by several negative comments citing his reputation.
Tom Lee, the co-founder, Managing Partner, and Head of Research at Fundstrat Global Advisors, has predicted a market-wide revival, which he says will take place this March.
“I think March is going to be a turnaround month for the better.”
In an interview with CNBC’s Squawk Box, Lee identified 2026 as a bullish year, with tech companies and cryptocurrencies showing the best gains.
Crypto and stock market bull run
In the interview, Lee forecasted a year-end target of 7,700 for the S&P 500 Index, which closed at $6,881 on Monday.
As for crypto, Lee dismissed the recent market volatility as more of a “squall” than a structural failure. He further reiterated a $200,000-$250,000 (roughly +165%) target for Bitcoin in 2026, adding that the flagship cryptocurrency would retire its historic four-year cycle in favor of a more mature momentum. This comment is similar to that made by digital asset management company Grayscale Investments, in its report dubbed the “Dawn of the Institutional Era.”
Lee projected similar sentiments on Ethereum, saying it was primed for a “supercycle.” The second-largest cryptocurrency by market cap would move from being a speculative asset to a significant financial infrastructure following heavy institutional adoption. This uptake would catalyze a rally to a range of $7,000 – $9,000 (roughly +363.92%) by early 2026, according to Lee.
Source: CoinMarketCap
He further noted AI-driven productivity, strong corporate earnings, and government support as key contributors to this outlook. AI infrastructure company Nvidia reported a staggering 875% increase in net profit since January 2023, according to Forbes. As for interest rates, the US Federal Reserve paused any further changes to the current range of 3.50% to 3.75%, with potential cuts expected to be delayed until June or September.
Comments on Lee’s market outlook
Most of the comments on CNBC’s X post of the interview depict wariness of Lee’s predictions, labeling him a “permabull” due to consistently optimistic forecasts for the US stock markets. One commentator compared him to Jim Cramer, citing previous notable missed calls, such as ETH hitting $6,500 on August 2025.
