BitMine’s 4M ETH Bet: Why Tom Lee is Buying the Dip Despite Record ETF Outflows
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Key Takeaways
Tom Lee expects the S&P 500 to reach 7,700 by 2026.
Lee argues Ethereum is “grossly undervalued” at current levels.
The bullish analyst claimed Bitcoin could reach as high as $250,000 within months.
Fundstrat and BitMine’s Tom Lee says the S&P 500 and major cryptocurrencies remain positioned for significant gains, even as markets face what he describes as a turbulent period of volatility.
Speaking to CNBC, Lee projected that the S&P 500 could rise to 7,700 by 2026. He also argued that Ethereum is “grossly undervalued” and could climb well beyond $12,000.
Separately, Lee has reiterated an aggressive bullish outlook for Bitcoin, suggesting it could reach as high as $250,000 within months.
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Lee said his 7,700 target reflects a moderation following several years of outsized returns, while still implying a strong upward trajectory for U.S. equities.
“We’re three years at 20% gains, because the S&P probably closes 7,000 or so this year,” Lee said.
“And so I think there’s a deceleration of what the market can do next year, but that 10%, I think, belies what will be a very turbulent year.”
Despite near-term uncertainty, Lee believes the broader policy environment remains supportive of stocks.
“At the end of the year, the real message will be, there’s the Fed put back in play,” he said.
“So then you have a White House put and a Fed put, which are tailwinds for stocks.”
Tech Leadership Slows
Lee cautioned that the market’s path higher could include sharp pullbacks resembling a bear market, particularly if technology stocks lose momentum.
“I think we could have what looks like a bear market in 2026, but we exit strong,” he said.
He cited several potential sources of volatility, including changes in Federal Reserve leadership, legal uncertainty surrounding tariffs, and growing skepticism about artificial intelligence.
“Whenever tech starts to stall, people wonder, is that the leadership ending?” Lee said. “So the market will fall, or is this a rotation?”
Lee believes the latter is more likely, suggesting market leadership may broaden beyond mega-cap technology stocks.
“People are more bearish now because tech is stalling,” he said, adding that entrenched pessimism is often seen “in the middle of a bear market,” even as prices ultimately move higher.
Bullish Outlook for Ethereum
Lee has been particularly optimistic about Ethereum, saying the asset has spent years consolidating and is now beginning to break higher.
“Ethereum has remained range-bound for five years but has now begun to break out,” Lee said, noting that Fundstrat has increased its exposure to the token.
“Ethereum at $3,000 is grossly undervalued,” he added.
Lee framed his price targets based on Ethereum’s historical relationship with Bitcoin.
“If Ethereum returns to its eight-year average ratio against Bitcoin, that’s $12,000,” he said. “But if it gets to 0.25 relative to Bitcoin, that’s $62,000.”
Bitcoin Outlook
Lee’s Ethereum comments were accompanied by a renewed bullish stance on Bitcoin.
According to earlier reporting from Bloomberg, Lee still expects Bitcoin to reach between $150,000 and $200,000 by late January, despite recent market declines.
“I think Bitcoin is going to get to $250,000 within a few months,” he said, adding that Bitcoin “looks positioned for a major move.”
While acknowledging ongoing volatility across both equity and crypto markets, Lee said easier monetary conditions and improving economic momentum could ultimately outweigh near-term concerns.
“At the end of the day, a cut into a strengthening economy supersedes everything,” he said.
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.
