Key Takeaways
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Tom Lee expects the S&P 500 to reach 7,700 by 2026.
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Lee argues Ethereum is “grossly undervalued” at current levels.
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The bullish analyst claimed Bitcoin could reach as high as $250,000 within months.
Fundstrat and BitMine’s Tom Lee says the S&P 500 and major cryptocurrencies remain positioned for significant gains, even as markets face what he describes as a turbulent period of volatility.
Speaking to CNBC, Lee projected that the S&P 500 could rise to 7,700 by 2026. He also argued that Ethereum is “grossly undervalued” and could climb well beyond $12,000.
Separately, Lee has reiterated an aggressive bullish outlook for Bitcoin, suggesting it could reach as high as $250,000 within months.
Lee said his 7,700 target reflects a moderation following several years of outsized returns, while still implying a strong upward trajectory for U.S. equities.
“We’re three years at 20% gains, because the S&P probably closes 7,000 or so this year,” Lee said.
Despite near-term uncertainty, Lee believes the broader policy environment remains supportive of stocks.
“At the end of the year, the real message will be, there’s the Fed put back in play,” he said.
Lee cautioned that the market’s path higher could include sharp pullbacks resembling a bear market, particularly if technology stocks lose momentum.
“I think we could have what looks like a bear market in 2026, but we exit strong,” he said.
He cited several potential sources of volatility, including changes in Federal Reserve leadership, legal uncertainty surrounding tariffs, and growing skepticism about artificial intelligence.
“Whenever tech starts to stall, people wonder, is that the leadership ending?” Lee said. “So the market will fall, or is this a rotation?”
Lee believes the latter is more likely, suggesting market leadership may broaden beyond mega-cap technology stocks.
“People are more bearish now because tech is stalling,” he said, adding that entrenched pessimism is often seen “in the middle of a bear market,” even as prices ultimately move higher.
Lee has been particularly optimistic about Ethereum, saying the asset has spent years consolidating and is now beginning to break higher.
“Ethereum has remained range-bound for five years but has now begun to break out,” Lee said, noting that Fundstrat has increased its exposure to the token.
Lee framed his price targets based on Ethereum’s historical relationship with Bitcoin.
“If Ethereum returns to its eight-year average ratio against Bitcoin, that’s $12,000,” he said. “But if it gets to 0.25 relative to Bitcoin, that’s $62,000.”
Lee’s Ethereum comments were accompanied by a renewed bullish stance on Bitcoin.
According to earlier reporting from Bloomberg, Lee still expects Bitcoin to reach between $150,000 and $200,000 by late January, despite recent market declines.
Speaking onstage at Binance Blockchain Week, Lee was even more bullish.
“I think Bitcoin is going to get to $250,000 within a few months,” he said, adding that Bitcoin “looks positioned for a major move.”
While acknowledging ongoing volatility across both equity and crypto markets, Lee said easier monetary conditions and improving economic momentum could ultimately outweigh near-term concerns.
“At the end of the day, a cut into a strengthening economy supersedes everything,” he said.
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