Tom Lee Predicts 2026 Market Downturn, Bitcoin’s New High

Tom Lee predicts significant declines in both cryptocurrency and stock markets by 2026 due to geopolitical tensions, tariff risks, and political divisions. He anticipates a 15% to 20% correction in the U.S. stock market this year, followed by a strong rebound as the Federal Reserve shifts to a more dovish policy and ends quantitative tightening.

Despite the expected downturn, Lee remains optimistic about Bitcoin, forecasting a new all-time high this year. He views this milestone as crucial for moving past the October 10 deleveraging event. Lee also highlights energy, basic materials, and gold as high-quality asset allocations for 2026, while AI and blockchain sectors are expected to benefit from growth. Benjamin Cowen, CEO of Into The Cryptoverse, shares a similar outlook, suggesting metals may outperform cryptocurrencies in 2026.