Fundstrat co-founder Tom Lee says crypto is entering a really bullish 12-month stretch, pointing to last October's deleveraging and the approaching four-year-cycle bottom. He argues investors chasing the exact low risk missing most of the rally, since crypto's returns cluster in a handful of explosive trading days.
Fundstrat co-founder Tom Lee says the next 12 months should be really bullish for crypto, citing last October's deleveraging and the approaching four-year-cycle trough. He argues the market has already flushed out much of its excessive leverage.
Fundamentals diverge from past crypto winters
Lee believes the fundamental backdrop for cryptocurrencies kept improving even as prices went through a prolonged downturn, contrasting today's cycle with past downturns marked by closures and dwindling use cases. According to U.Today: "crypto fundamentals have been strengthening, which is a real contrast to past crypto winters", he said.
He pointed to growing tokenization adoption by major financial institutions, particularly on Ethereum, as one driver. Rising AI capabilities could add another source of demand for blockchain infrastructure, since AI agents may prefer crypto rails over traditional financial systems, in his view. Lee therefore described the recent crypto rebound as a course correction rather than a short-lived rally.
Timing the bottom could backfire
Lee also warned against trying to catch the exact market low. He framed the choice as buying either four weeks before the bottom or one week after it, arguing investors should take either opportunity rather than wait for confirmation. Under his current view, buyers already sit in an attractive part of the cycle, whether the low came last week or a retrace still lies ahead.
He linked this to Fundstrat's long-running observation that missing the ten best trading days turns crypto's returns negative. Lee noted 2026 has produced very few such explosive sessions so far, which he sees as leaving room for further upside into year-end.
Institutions could chase performance
Lee expects institutional performance chasing to become a bigger factor if crypto keeps outperforming traditional assets.
Source: U.Today
Trading involves risk.
Risk Disclaimer
