Bullish Return? Tom Lee: Bitcoin could hit a new high as early as January, but also warns of a potential 15% pullback in the first half of the year

Tom Lee predicts Bitcoin will hit a new high as early as January, while also warning of a potential 15% correction in the first half of the year. Nonetheless, he remains optimistic about a rebound in the second half and the long-term bullish trend driven by AI.

Tom Lee: Bitcoin to Reach New High as Early as January

Asset management firm Fundstrat founder and Ethereum reserve company BitMine chairman Tom Lee made a surprising statement during an interview with CNBC on 1/5, saying that Bitcoin ($BTC) still has room to grow and could hit a new all-time high by the end of January.

According to CoinDesk, although Bitcoin is not expected to break the $200,000 mark by the end of 2025 as Tom Lee previously predicted, he emphasized that investors should not assume cryptocurrency prices have already peaked.

He is also bullish on Ethereum, believing its current value is severely undervalued and entering a super cycle similar to Bitcoin’s from 2017 to 2021.

As of the time of writing, Bitcoin is priced at $93,740, still 34.63% below the record high of $126,198 set on CoinMarketCap.

Regarding the overall financial markets in 2026, Tom Lee pointed out that, benefiting from a resilient US economy, improved corporate profitability, and productivity growth driven by artificial intelligence (AI), the S&P 500 is expected to reach 7,700 points by the end of 2026.

He believes that risk assets, after years of significant gains, remain fundamentally sound, with AI and cryptocurrencies being the mainstays of a structurally strong mainstream trading environment.

Tom Lee warns of a 15% correction in the crypto market in the first half of 2026

Meanwhile, Tom Lee recently warned that the first half of 2026 will be challenging, with a potential correction of 10% to 15%.

This is mainly due to profit-taking by investors and market reassessment of valuations. He mentioned on CNBC that 2026 will be a year of stark contrasts between the first and second halves, with turbulence and institutional rebalancing in the first half laying the groundwork for a strong rebound in the second half.

Image source: CNBC

Tom Lee analyzes that as the market absorbs correction pressures, policy support will re-emerge, including support from the Federal Reserve and the White House, which will once again become focal points for the market.

He believes that current market anxiety mainly stems from investors’ concerns about whether future gains have already been priced in, viewing it as growing pains rather than a structural collapse.

Tom Lee previously predicted Bitcoin could reach $250,000

Looking back to the end of 2025, Fundstrat Digital Asset Strategy Head Sean Farrell warned that due to the drying up of spot ETF inflows and miner sell pressure, Bitcoin could test the $60,000 to $65,000 range in 2026.

At that time, asset management giant Fidelity shared a similar view, believing Bitcoin would enter a cyclical correction year, with support levels around $65,000.

However, Tom Lee’s perspective differs. He focuses on long-term liquidity cycles and market structural shifts, predicting that Bitcoin could surge to $250,000 in the coming months.

As Tom Lee reaffirms his view of a new high in January and a bullish outlook for the second half, the market will closely watch the outcome of this bullish versus bearish debate.

Further reading:
Going against the boss? Tom Lee calls for Bitcoin to reach $250,000, but Fundstrat warns: next year could see a drop back to $60,000