[Tom Lee: The Crypto Market May Face 'Growing Pains' in Early 2026, with a Rebound Expected by Year-End] According to a report by Jinse Finance, Fundstrat's Head of Research, Tom Lee, has warned investors that due to geopolitical tensions, the cryptocurrency and stock markets may experience a 'painful downturn' in 2026. However, he expects a recovery by the end of the year. In an interview on Tuesday with Wilfred Frost, host of *The Master Investor Podcast*, Lee stated that the situation in 2026 will be similar to 2025. The blockchain and AI industries will continue to benefit, but risks such as tariffs and political divisions may limit sustained market growth in the early stages. Lee predicts that the stock market could see a 15% to 20% correction this year, but he added, 'I think we’ll have a strong finish to the year,' partly due to the Federal Reserve's dovish stance and the conclusion of last year’s quantitative tightening. He also mentioned that the White House's approach to picking 'winners and losers' could impact the performance of various industries this year. Regarding Bitcoin, Lee reiterated his expectation that it will reach a new all-time high this year but did not mention his previous prediction of a $250,000 Bitcoin price made a few months ago.