Tom Lee sees potential upside across Bitcoin and Ethereum
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Key Takeaways
Fundstrat’s Tom Lee and Mark Newton remain bullish on Bitcoin and Ethereum despite recent sharp declines.
Ethereum and Bitcoin face near-term volatility.
Both analysts still expect upside into early 2026, with Lee predicting Bitcoin could reach a new all-time high by the end of January.
As Bitcoin (BTC) and Ethereum (ETH) continue to post steep losses, Fundstrat’s Tom Lee and Mark Newton have remained bullish on accumulation.
The two analysts argued that the recent pullback has improved risk-reward conditions for long-term investors, even as the short-term setup looks volatile.
This latest commentary follows Lee’s prediction of a bullish price outlook for Bitcoin in January, which claimed it may reach an all-time high by the end of the month.
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Lee, BitMine Immersion Chair and Fundstrat Global Advisors Managing Partner, wrote on X that although crypto prices have sharply fallen, key fundamentals have continued to progress.
“Crypto prices have fallen relentlessly even as fundamentals, measured by wallets, on-chain, fees or tokenization, have moved forward,” he wrote.
Tom Lee backed up claims from his colleague | Source: X
Adding: “So risk/reward is attractive for Bitcoin and Ethereum.”
Lee’s comments came in response to claims from his colleague Newton, who reiterated a bullish prediction for Ethereum in the coming months.
Potential Upside
Fundstrat Managing Director Newton said the recent pullback has created a favorable setup for buyers over the next several weeks.
“If you have a two-month window, I think crypto is a great risk-reward here. I think we are going to be higher between now and the middle part of January, even the early part of February,” he said.
Newton noted, however, that the near-term path remains uncertain ahead of the December Federal Reserve meeting.
“The question is whether we can be higher between now and the December Fed meeting. We’ve seen a very sharp drawdown of late,” he said.
Fundstrat’s @MarkNewtonCMT says he is buying crypto here and using weakness as a dip buying opportunity
He says crypto should be higher between now and mid January and even into early February
He calls the next two months a strong risk reward setup despite short term volatility pic.twitter.com/pzuAAYMWYI
— Tom Lee Tracker (Not actually Tom) (@TomLeeTracker) December 1, 2025
Despite optimism about early 2026, Newton cautioned that technical indicators have not yet shown clear signs of capitulation.
“The key message here for both the daily and the weekly, we’ve not really seen sufficient exhaustion just yet,” he said.
Adding: “I’ve looked at some of the wave structure and a lot of this stuff tends to agree that over the next couple of weeks, there is a chance of potentially a little bit further to go on the downside.”
On Monday, Dec. 1, BitMine announced it had added over $265 million Ethereum to its treasury last week.
Bullish on Bitcoin
Beyond Ethereum, Lee has reiterated another bullish prediction for Bitcoin entering the new year, believing it could hit a new all-time high.
Speaking to CNBC on Sunday, he said: “I do think Bitcoin can make an all-time high by the end of January.”
This prediction, while certainly bullish, is a major walk-back from his previous outlook, stating that Bitcoin would hit $250,000 by the end of 2025.
This was walked back last week, with Lee claiming it could now only “maybe” achieve this feat.
Analysts Warn of Further Downside
Ethereum’s selloff accelerated after the token lost the $4,000 horizontal support area, a level that had held for much of the year, according to CCN analyst Valdrin Tahiri.
Once that barrier gave way, ETH “fell rapidly,” briefly touching $2,623 before staging a modest rebound.
ETH has now declined about 43%, with bulls “making their last stand at the $2,800 support level,” Tahiri said.
He noted Ethereum currently trades near the middle of its long-term horizontal range between $1,500 and $4,000.
At the time of reporting, Ethereum was trading at around $2,800, down 2% over the past week.
A break below current levels could trigger a further slide toward the range low near $1,500, he added.
Bitcoin Drops Below $86,000
Bitcoin has mirrored this weakness, dropping 5% within hours on Sunday and sliding below $86,000, erasing more than $200 billion in market value.
CCN analyst Victor Olanrewaju said the speed of the decline pointed to investor concerns about developments in Japan.
“In short, the combination of a weakening yen, rising inflation, and a suddenly more hawkish BOJ has rattled markets,” Olanrewaju wrote. “If left unchanged, Bitcoin’s price may experience an extended decline.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
