Bitcoin, Ethereum Price Fall ‘Attractive,’ Tom Lee Says, Predicts BTC ATH Next
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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Tom Lee Highlights Improvements
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.
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.
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…
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