Tom Lee, the co-founder of Fundstrat Global Advisors and one of Wall Street's most prominent Bitcoin bulls, isn't backing down. In a Monday appearance on CNBC's Squawk Box, Lee declared that Bitcoin has not yet peaked and predicted the cryptocurrency could reach a new all-time high by the end of January 2026—a bold call given Bitcoin's current trading level around $93,000.
The January Prediction
"I don't think bitcoin has peaked yet," Lee said during the interview. "We were overly optimistic about achieving the high-water mark before December, but I do believe that bitcoin can hit a new all-time high by the end of January 2026."
Bitcoin's current all-time high stands at just over $126,000, reached in October 2025. That means Lee is forecasting a roughly 35% surge in the next three weeks—an ambitious target, but not unprecedented in crypto markets.
Where Lee Got It Wrong—and Right
Lee's prediction comes with important context. In August 2025, he forecasted Bitcoin would surpass $200,000 before year-end. That didn't happen. Bitcoin peaked in October and spent the final months of 2025 trading sideways, closing the year around $88,500.
But Lee's broader directional calls have been remarkably accurate. He was bullish when Bitcoin traded below $20,000 in early 2023, correctly predicting the recovery that followed. His track record suggests timing may be off, but the trend analysis often proves correct.
The Institutional Adoption Thesis
Lee's bullish case rests on who hasn't bought Bitcoin yet. He argues that the cryptocurrency's adoption runway extends far beyond current holders.
"Bitcoin's adoption runway could be roughly 200 times larger if even modest allocations flow from retirement accounts and brokerage platforms," Lee said. "We're still in the early innings of institutional adoption."
He pointed to the success of spot Bitcoin ETFs, which captured $645 million in net inflows on the first trading day of 2026 alone—a "January effect" that signals renewed institutional appetite after a bruising end to 2025 that saw over $6 billion in combined outflows across November and December.
A Volatile Road Ahead
Lee tempered his optimism with a warning: 2026 will be a bumpy ride.
"2026 is going to be a year of two halves," he predicted. "The first half of 2026 may be tough as we deal with institutional rebalancing and a 'strategic reset' in the crypto markets, but that volatility is exactly what sets the stage for the massive rally we expect in the back half."
This two-halves thesis aligns with broader market uncertainty around Federal Reserve policy. President Trump is expected to announce his Fed Chair nominee around January 9, with Kevin Hassett emerging as a leading candidate to replace Jerome Powell. A more dovish Fed under new leadership could provide the liquidity tailwinds that crypto markets typically favor.
The Ethereum Angle
Lee didn't limit his bullish outlook to Bitcoin. He expressed even stronger conviction about Ethereum's prospects.
"Our belief is that Ethereum is dramatically undervalued," Lee stated. "We believe ETH is entering a supercycle similar to Bitcoin from 2017 to 2021."
With Ethereum trading around $3,160 following its Fusaka upgrade in December, Lee sees the second-largest cryptocurrency as poised for outsized gains if the broader crypto thesis plays out.
What It Means for Investors
For retail investors, Lee's prediction raises the perennial crypto question: Is this the last chance to buy before a breakout, or another case of Wall Street hype meeting market reality?
The data offers mixed signals. On one hand, ETF inflows are recovering, network fundamentals are improving, and the incoming administration is expected to pursue crypto-friendly policies. On the other hand, macroeconomic uncertainty, elevated valuations across risk assets, and the Fed's still-restrictive policy stance present headwinds.
Lee himself acknowledges the timing uncertainty. His track record shows he's often early, sometimes wrong on price targets, but rarely wrong on direction. For investors, that may be the most important signal: a veteran strategist with deep institutional connections remains convinced Bitcoin's best days are ahead.
Whether January delivers a new all-time high or merely sets the stage for later gains, Lee's conviction adds fuel to what's shaping up to be another pivotal year for digital assets.
