Tom Lee crypto bullish setup for 2026 points to new highs for BTC and altcoins

Analysts see 2026 as a potential inflection point for digital assets, with a growing consensus that a crypto bullish setup could drive the next major uptrend.

Rising optimism for 2026 in crypto markets

As the final month of the year approaches its end, traders and analysts are increasingly focused on the New Year and beyond. Moreover, both bullish and bearish scenarios for BTC and altcoins are circulating across the market.

On the downside, some market commentators see a possible bear phase ahead, with BTC bottom calls clustered in the $40,000 – $60,000 range for next year. However, optimistic projections are gaining traction as well, especially for the 2026 horizon.

In this context, Tom Lee has reiterated that he sees the crypto market structure in 2026 as strongly favorable. He also argues that both BTC and major altcoins could reach new all-time highs in that period, reinforcing a broadly bullish market outlook.

Raoul Pal’s extended cycle thesis for 2026

As the year draws to a close, well-known crypto voices such as Raoul Pal and Tom Lee remain firmly constructive on digital assets. Pal expects fresh BTC all-time highs and a powerful altcoin cycle, or altseason, as the current bull trend moves toward its final stages.

Moreover, Raoul Pal has publicly rejected many of the 2026 bear market calls. He argues that the classic four-year halving-based cycle is no longer the key framework for understanding the current phase of the crypto market.

In detail, Pal says this bull run has been extended by a longer global business cycle and a persistent scarcity of worldwide liquidity. That said, he believes we are now in a five-year supercycle, with 2026 poised to mark its peak and deliver a possible altseason peak forecast for many tokens.

If Pal’s thesis proves correct, both BTC and leading altcoins could push to fresh record prices in 2026. Furthermore, he expects the long-awaited peak phase of the altcoin cycle to potentially unfold within a matter of weeks once the final leg begins.

Tom Lee’s ETH accumulation strategy

Another influential figure backing a strong 2026 is Tom Lee of Bitmine Immersion. Under his guidance, the firm made a radical portfolio shift this year that underscores its conviction in Ethereum’s long-term value.

Specifically, Bitmine Immersion halted all of its Bitcoin mining operations during the year and liquidated its BTC holdings in favor of ETH. Moreover, the company has since gone all in on accumulating ETH on its balance sheet.

Lee has set an ambitious target: he aims for Bitmine Immersion to secure 5% of the total ETH supply over time. According to his comments, the entity already holds nearly 2% of the entire Ethereum supply, signaling a substantial long-term tom lee crypto bet.

Key elements of the 2026 bullish scenario

Presently, Tom Lee says that the broader environment in 2026 looks favorable for digital assets. In his view, the overall configuration for that year can best be described as a crypto bullish setup supported by macro and policy tailwinds.

Lee does caution that the New Year could start with a brief pullback, projecting a possible 10%-15% correction early on. However, he expects that phase to be temporary rather than the start of a deeper bear market.

According to Lee, the more important story is the strong rally he anticipates later in the year, which he believes will be driven by two primary catalysts. Moreover, these catalysts are rooted in expected changes in U.S. policy direction and the return of supportive monetary conditions.

Policy support from Washington

The first catalyst Lee highlights is what he calls a shift in the stance of the White House. He expects U.S. policymakers to lean toward more pro-business measures that can improve risk sentiment across equities and digital assets alike.

In particular, Lee points to the prospect of lighter regulation around AI and innovation-heavy sectors. Additionally, he notes that post-midterms gridlock in Washington could limit aggressive new legislative risks, which may indirectly benefit high-growth and crypto-related assets.

This potential policy environment, often summarized as a kind of “White House put,” could help underpin risk assets throughout 2026. That said, the exact form and timing of any regulatory shifts will remain a key variable for investors to monitor.

Monetary conditions and liquidity return

The second major catalyst in Lee’s framework centers on the Federal Reserve Board and its policy stance. After roughly three years in which returns from risk assets were constrained, he expects a turning point in central bank support.

As highlighted in a CNBC segment shared on social media on 2025, Lee argued that the Fed is likely to move toward renewed accommodation. Moreover, he suggests that this could involve some form of QE or other measures that help restore ample liquidity to financial markets.

If this scenario plays out, the resulting crypto liquidity flow could be significant for both BTC and altcoins. However, Lee also notes that the first half of the year might not yet feature a “new Fed,” leaving room for volatility before the anticipated H2 upswing.

Comparing 2025 and 2026 market dynamics

Reflecting on the current year, Lee summarized 2025 with the statement, “This year had a bear market, then a bull market.” His comment underlines how quickly sentiment and price action have already flipped within a single calendar year.

By contrast, he expects 2026 to be more defined by a sustained bullish trajectory supported by macro tailwinds rather than short, violent swings. Moreover, he believes that altcoins could particularly benefit if the supercycle thesis outlined by Raoul Pal proves correct.

In this scenario, BTC could register another btc ath prediction milestone, while select altcoins might outperform during the peak phase of the cycle. That said, both Lee and Pal implicitly stress that investors should remain aware of macro risks and policy surprises.

In summary, Tom Lee and Raoul Pal converge on a view of 2026 as a pivotal year for digital assets, shaped by policy support, easier monetary conditions, and a potential supercycle peak. While near-term corrections remain possible, their combined outlook keeps market participants focused on the prospect of fresh highs for BTC and altcoins in the years ahead.