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Tom Lee, Director of Research at Fundstrat, expressed on CNBC his anticipation of a significant rally in the cryptocurrency market by the end of 2025. Lee believes this surge will be supported by improved technical indicators and the easing of market conditions following recent leverage unwinding. Despite the recent significant liquidation event amid escalating US-China trade tensions, he noted that Bitcoin 
$103,176 and Ethereum 
$3,430 have maintained their resilience.
Recovery Signals Post-Liquidation
Highlighting the record low levels of open positions, Lee emphasized that technical signals have turned positive once again. He expressed confidence that the market is nearing the end of this process, suggesting a rally in cryptocurrencies by the end of the year. He also mentioned JPMorgan’s openness to using cryptocurrencies as collateral as a “very strong bullish signal” for the markets.
Bitcoin and Ethereum Show Strength
Lee pointed out that Bitcoin’s drop was limited to only 3-4%, demonstrating the asset’s strength as a store of value. He argued that Bitcoin’s similarity to gold’s stability reinforces its position as a reliable long-term investment. On the Ethereum front, Lee mentioned a growth not yet reflected in the prices. Particularly with the increase in stablecoin usage, significant activity is noticed on both Layer 1 and Layer 2 networks, indicating Ethereum’s ecosystem is strengthening and may positively impact future price movements.
Lee expressed optimism not only towards crypto but also traditional markets. Fundstrat maintains its expectation of a 4-10% rise in the S&P 500 index by year-end. According to Lee, the resumption of rate cuts by the Federal Reserve and diminishing market doubts will support this increase.
These statements, coupled with recent news of BlackRock preparing to launch a new fund based on digital asset investments, were interpreted as a sign of renewed institutional interest in crypto assets. Increasing institutional interest is seen as a critical factor in determining the long-term direction of the market.
As 2025 approaches, the crypto market is entering an encouraging period in terms of macroeconomic data and institutional attitudes. Lee’s optimistic statements, Bitcoin’s strong stance, and Ethereum’s expanding ecosystem reassure investors. However, it should not be forgotten that short-term volatility is not entirely over. Therefore, taking cautious steps when entering the market is the most appropriate approach for investors in terms of risk management.
