Tom Lee: Crypto market may fall first and then rise in 2026, and may rebound by the end of the year

Fundstrat research director Tom Lee stated that the cryptocurrency and stock markets may experience a "painful decline" in 2026 due to geopolitical tensions, but are expected to rebound by the end of the year. In an interview with The Master Investor Podcast, he stated that in 2026 or similar to 2025, the blockchain and AI industries will still benefit, but the risks of tariffs and political divisions may limit the initial rise of the market. Lee expects the stock market to correct by 15% -20% this year, but it may end the year strongly due to the Fed's dovish stance and the end of quantitative tightening. He also mentioned that White House policies may affect industry performance and expects Bitcoin to reach a historic high this year, but did not mention the previously predicted $250000 target.