Expert market analyst Tom Lee says 2026 could be a powerful year for both crypto and stock markets. In a recent video, Lee explained why he believes the coming year offers one of the most attractive setups for investors in years, especially for Bitcoin and Ethereum.
Lee points to one major driver that is U.S. monetary policy. After 3 years of tight conditions, he expects liquidity to finally improve. With the possibility of a new Federal Reserve chair and easing financial pressure, he sees a strong environment for a market recovery.
He also highlighted how weak the business cycle has been. The ISM manufacturing index has stayed below 50 for 36 straight months, something that has never happened before. According to Lee, this long period of stagnation is setting the stage for a sharp rebound.
Crypto Could See a V-Shaped Comeback
Lee believes the fundamentals for Bitcoin and Ethereum are getting stronger despite recent market weakness. Institutional demand continues to rise, while exchange supplies of BTC and ETH are dropping sharply, something he views as a sign that a local bottom may be forming.
“Crypto has disappointed many investors over the past few months, but fundamentals are building strongly,” Lee said.
He adds that Bitcoin is now widely seen as an institutional asset, while Ethereum has major long-term potential thanks to the growth of stablecoins and tokenization by firms like BlackRock and Robinhood.
Lee expects a V-shaped recovery, with Bitcoin potentially reclaiming $100,000 by year-end, and Ethereum hitting $7,000 to $9,000 by the end of January 2026. He also noted that the U.S. stock market just posted its biggest November reversal ever, giving additional momentum to crypto.
Altcoin Daily host Aaron echoed the same sentiment, calling this period one of the best buying opportunities in recent years.
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Bitcoin Supply Shock Could Ignite Bigger Gains
On CNBC, Lee said Bitcoin is heading into a major supply crunch. The halving has reduced how much new BTC enters the market, while demand keeps rising. He explained that when supply drops and demand grows, prices usually move up quickly.
Lee believes Bitcoin could break $100K–$150K before the year ends, and still stands by his bold long-term target of $3 million per BTC.
MicroStrategy’s Michael Saylor delivered a similar message: “There’s no second best. Demand is exponential, supply is fixed, the math is inevitable.”
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FAQs
Analysts expect 2026 to be strong as liquidity improves and demand rises. Many see this setup as favorable for a broad crypto recovery.
A supply crunch from the halving, growing demand, and stronger market conditions could help Bitcoin reclaim the $100K level.
Some analysts say current weakness may offer opportunities, but emphasize researching risks and investing only what you’re comfortable with.
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