Tom Lee, head of research at Fundstrat and chairman of Bitmine Immersion Technologies, has reiterated his bullish stance on bitcoin, maintaining his $250,000 price target for 2026 and forecasting new all-time highs this year. In a recent interview on the Master Investor Podcast, Lee explained why crypto underperformed in 2025 and why he remains confident in the long-term trajectory.
2025 Market Recap: The Hidden Rally
Lee argued that crypto markets were actually outperforming until October 10, 2025, when a sudden crash erased roughly $500 billion in market capitalization and triggered billions in liquidations. He acknowledged that a lack of liquidity and institutional support remains a structural weakness, but he does not see it as a reason to abandon the bullish thesis.
The Real Catalyst: Growing Crypto Utility
When asked what will drive bitcoin to $250,000, Lee pointed to the increasing awareness of crypto’s real-world utility. “We think bitcoin will make a new high this year… driven by the usefulness of crypto increasing,” he said. He highlighted that banks are recognizing blockchain’s efficiency, particularly settlement finality, as a superior financial infrastructure. Lee also cited stablecoin issuer Tether as a prime example of utility-driven success. Tether, with only 300 full-time employees, is projected to generate nearly $20 billion in profits in 2026 — making it one of the most profitable banks globally, second only to JPMorgan in valuation and exceeding Goldman Sachs and Morgan Stanley by a wide margin.
Tether: A Case Study in Blockchain Banking
Lee elaborated: “Tether, which is a crypto-based bank, is proving that a bank that emerges natively on blockchain is actually better than a traditional bank. It’s expected to make almost $20 billion in 2026 earnings. That would make it a top 5 in terms of profits. On valuation it might be number two, only to JPMorgan, twice the valuation of Goldman Sachs or Morgan Stanley. Tether only has 300 full-time employees; JPMorgan has 300,000. So by using blockchain, they make more money than any bank and they have less than one per cent of the M1 money supply, and a tiny balance sheet. Yet it’s one of the most profitable banks in the world.” He views this as the beginning of a massive shift of financial services onto blockchain rails.
Bitcoin 2026 Outlook: New Highs Ahead
Lee remains confident that bitcoin will surpass its previous all-time high in 2026, driven by growing institutional adoption and the proven efficiency of blockchain technology. Although volatility may persist in the short term, he believes the long-term fundamentals point to $250,000 as a realistic target. Fundstrat’s analysis continues to support this view, suggesting the onset of a new super cycle for bitcoin.