Fundstrat co-founder Tom Lee said global markets may face a sharp correction in 2026 before staging a strong rebound later in the year, driven by an eventual shift in U.S. monetary policy.
In a recent interview, Lee cited rising geopolitical tensions, tariff risks, and political polarization as key factors that could trigger a significant pullback across both equity and crypto markets. He estimates the U.S. stock market could decline between 15% and 20% during the year.
However, Lee expects conditions to improve once the Federal Reserve pivots toward a more dovish stance and brings quantitative tightening to an end. Under that scenario, he believes markets could rebound strongly by year-end.
Bitcoin still expected to reach new ATH
Despite near-term downside risks, Lee said he remains confident that Bitcoin will reach a new all-time high in 2026.
He described a fresh Bitcoin peak as a critical milestone that would allow the market to fully move past the October 10 deleveraging event, which marked one of the largest risk resets of the current cycle.
According to Lee, a confirmed new high would signal restored confidence and structural recovery across digital assets.
Preferred assets for 2026
Looking ahead, Lee said energy, basic materials, and gold stand out as high-quality allocation assets for 2026 amid macro uncertainty.
At the same time, he expects AI and blockchain sectors to continue benefiting from long-term growth trends, even if volatility persists in the near term.
Into The Cryptoverse CEO Benjamin Cowen echoed similar views, suggesting that precious metals may once again outperform cryptocurrencies during parts of 2026, particularly if macro pressures remain elevated.
