Quick Takeaways
- Fundstrat’s Tom Lee augurs a year-closing rally in Bitcoin and Ethereum.
- Open sake for BTC and ETH hits a criminal record Low, signaling good market conditions.
- Institutional funding, including JPMorgan’s crypto collateral position, boosts confidence.
Tom Lee Predicts a Twelve-Month-End Crypto Rally
Fundstrat’s Tom Lee considers that the crypto market is bracing for a strong recovery before the end of 2025. In a late CNBC interview, Lee expressed optimism about both digital asset and traditional markets, citing amended first harmonic and technical indicators.
The market place later broke out its brash liquidation in five classes, triggered by rising U.S.-China trade tensions. Despite the volatility, Bitcoin and Ethereum have remained resilient, suggesting that the spoilt may be behind.
Bitcoin and Ethereum Show Strength.
Lee noted that open involvement for Bitcoin and Ethereum is at record with Sir David Lo, a sign that leveraged positions have been crystallized. At the same time, both assets are scud positive proficient signals, pointing to stronger momentum.
“I think we’re almost through that because a measure like open interest for both Ethereum and Bitcoin is at record lows at a time when the technicals for both Bitcoin and Ethereum are flipping positive,” Lee said. “So I think you’re going to see a crypto rally at the end of the year.”
He also highlighted institutional signals, such as JPMorgan’s openness to using crypto as collateral, as a strong tailwind for the market.
Bitcoin’s Stability Under Pressure
Lee emphasized Bitcoin’s stability amid extreme market stress. Despite heavy deleveraging earlier this month, Bitcoin only dropped 3–4%, showing its resilience as a store of value.
He compared this behavior to gold, noting that such minimal drawdowns reinforce Bitcoin’s growing credibility as a reliable asset class.
Ethereum, meanwhile, continues to see rising on-chain activity across Layer 1 and Layer 2 networks, driven by stablecoin demand. While Ethereum’s price hasn’t yet caught up with its fundamentals, Lee believes a “pretty big move” could follow.
S&P 500 Could Rise Another 10%
Beyond crypto, Lee remains bullish on equities. He expects the S&P 500, already up over 15% this year, could gain another 4–10% by year-end, supported by potential Fed rate cuts and continued investor caution.
According to Lee, this combination of macro tailwinds and technical recovery sets the stage for both traditional and digital markets to end 2025 on a strong note.
Analysts See Positive Momentum Building.
Market analysts agree that Bitcoin’s technical setup looks encouraging. Rekt Capital indicates that BTC is nearing a breakout from a daily ascending triangle, suggesting renewed bullish momentum. With institutional pursuit moving up and technical indicators improving, experts see grounds that a year-end crypto rally could be underway.
