Bitcoin Price to Reach $250K, but 2026 May Be a Jagged Year: Lee

TLDR

• Tom Lee maintains his Bitcoin price target of $250,000, citing rising crypto usefulness and adoption.
• Lee warns that 2026 could bring significant market turbulence, with potential drawdowns in both crypto and broader markets.
• Lee believes Bitcoin’s new all-time high in 2026 would signal the end of the recent market deleveraging event.
• He predicts that Bitcoin’s adoption curve will continue to rise, though it may face several challenges along the way.
• Lee highlights the U.S.’s favorable demographics and technological progress as key factors supporting its economic strength.

Tom Lee, the co-founder of Fundstrat, continues to forecast Bitcoin hitting $250,000, despite warning of potential turbulence ahead in 2026. He acknowledged that the year could see ups and downs in crypto adoption and broader markets. Lee sees the market digesting key transitions that could result in a significant drawdown before ultimately resuming the bullish trend from 2022.

Bitcoin Price Target of $250,000

Tom Lee remains confident in his Bitcoin price target of $250,000, predicting a strong upside potential for the cryptocurrency. He explained that Bitcoin’s “usefulness” is steadily increasing, with banks beginning to recognize blockchain settlement and finality. He also highlighted the rise of crypto-based financial models as a key driver for this upward momentum.

In his comments, Lee emphasized that 2026 could be a critical year for Bitcoin’s growth. “If Bitcoin makes a new all-time high, we know that the deleveraging event is behind us,” he said. This aligns with his broader view that the cryptocurrency’s adoption curve will continue to grow despite potential setbacks.

A Jagged Year for Crypto Adoption

Despite his optimism for Bitcoin’s future, Lee warned that 2026 might not be smooth sailing. He pointed to a “new Fed” dynamic, where markets could face volatility as they adjust to changes in leadership. The shifting financial landscape could trigger corrections in the market, with Lee suggesting a 10% to 20% pullback in the S&P 500 as a possibility.

Lee also mentioned that the crypto market is not immune to periodic deleveraging events. “The single largest deleveraging event in the history of crypto” occurred on October 10, Lee explained, affecting Bitcoin and Ethereum significantly. Despite this, he believes that Bitcoin’s resilience as “digital gold” remains intact.

U.S. Economic and Technological Strength

Lee also discussed the long-term structural advantages of the U.S., particularly its demographics and technological progress. He pointed out that the U.S. has a favorable demographic trend, with younger generations set to inherit substantial wealth. He noted that these wealth transfers could contribute to growing inequality but will also reshape the economic landscape.

On the technological front, Lee sees rapid advancements in AI and robotics as factors that will further bolster U.S. leadership. He believes blockchain adoption is expanding beyond early players like BlackRock and Robinhood, with major financial institutions such as JPMorgan now embracing the technology.

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