Fundstrat's Tom Lee has predicted the end of "cryptozyme" by April 2026. How far is the bottom?

The current downturn in the cryptocurrency market is nearing completion and should end no later than April 2026, according to Tom Lee, co-founder and head of research at analyst firm Fundstrat, who also chairs the board of BitMine Immersion Technologies, the largest corporate holder of Ethereum. "My guess is that cryptozyme is either over or will be over by April at the latest. So I think we're almost through winter," one of Wall Street's most accurate forecasters said in an interview with crypto-enthusiast Farokh Sarmed.

According to Lee, the crypto market is in the final stage of correction, as indicated by extremely negative investor sentiment and technical indicators. Referring to the calculations of analyst Tom DeMark, Lee suggested that the bottom of bitcoin is expected to be around $60,000, and Ethereum - around $1890. The co-founder of Fundstrat did not rule out that the quotes may need another short-term decline for the final formation of the lows.

Bitcoin fell about 2% on Monday, Feb. 16, and was trading just below the $69,000 mark, Yahoo Finance shows . It has lost more than 40% since its October peak. The crypto market's capitalization has shrunk by nearly $2 trillion in that time, Bloomberg cites data from CoinGecko.

Lee attributed the recent divergence in the dynamics of cryptocurrencies and other risky assets to the excessive outflow of liquidity into gold. He stated that the total value of this precious metal in the world has reached $40 trillion, equaling the total capitalization of the S&P 500 excluding the Magnificent Seven. The frenzied demand for precious metals and concerns about the stability of the fiat monetary system have had a negative impact on digital assets, which are perceived as part of it, unlike gold, he said.

Assessing the prospects for 2026, the analyst expressed confidence in the growth of risk assets. His optimism is due to the expected easing of monetary policy in the U.S.: the new head of the Fed Kevin Warsh is likely to take a "dovish" position, contributing to the reduction of interest rates. Lee cited the turnaround in the business cycle - economic activity in the United States has begun to pick up after three years of decline - and the slowdown in inflation to pre-COVID-19 levels as additional positive factors.

This article was AI-translated and verified by a human editor