Tom Lee, co-founder and head of research at Fundstrat Global Advisors, went on CNBC's Squawk Box to make a bold call: March will be the turnaround month. “I think March is going to be a turnaround month for the better,” he said, adding that 2026 looks bullish overall, with tech and crypto leading the charge.
S&P 500 Year-End Target at 7,700
Lee set a specific year-end target for the S&P 500 at 7,700 points. The index closed Monday at 6,881, implying roughly 11.9% upside. He identified large-cap tech, software, and cryptocurrencies as the leaders of the coming rally.
Bitcoin at $250K by 2026
Dismissing recent crypto volatility as a “squall” rather than a structural failure, Lee reiterated his $200,000 to $250,000 price target for Bitcoin in 2026 – about 165% above current levels. He argued the flagship cryptocurrency will retire its historic four-year cycle in favor of a more mature momentum. The sentiment mirrors Grayscale Investments' “Dawn of the Institutional Era” report.
Ethereum 'Supercycle' Ahead
Lee projected a “supercycle” for Ethereum, predicting it will shift from a speculative asset to a major financial infrastructure through heavy institutional adoption. His target for early 2026 is $7,000 to $9,000, translating to a gain of roughly 363.92%.
The analyst attributed the outlook to three drivers: AI-driven productivity gains, strong corporate earnings, and government support. Nvidia reported an 875% net profit surge since January 2023, according to Forbes. On the interest rate front, the Federal Reserve held its rate at 3.50%-3.75%, with rate cuts not expected until June or September.
Skeptics Push Back
Lee's predictions sparked heavy criticism on CNBC's X post. Commenters labeled him a “permabull,” citing his history of overly optimistic calls. One user compared him to Jim Cramer, pointing to a missed prediction that Ethereum would hit $6,500 by August 2025.