$ETH , $BTC and $XRP are nearing bottom. The cryptocurrency market is experiencing a deeper correction than expected, but one of Wall Street's most prominent optimists, Tom Lee of Fundstrat Global Advisors, believes the worst is behind us. In an interview with CNBC's Squawk Box on February 3, 2026, Lee stated that the current levels of Bitcoin and Ethereum create a rare combination of price and time that historically signals a local market bottom. Despite the declines, fundamentals remain intact—and are even improving—which could soon translate into a rebound. Tom Lee admitted that the sell-off in cryptocurrencies proved stronger than Fundstrat predicted. Bitcoin and Ethereum have lost a significant portion of their October 2025 gains, and altcoins are seeing even deeper declines. He believes the main reason for the capital turnover is FOMO in the precious metals market—gold and silver rose strongly in early 2026, attracting capital from risk assets. Additionally, cryptocurrencies currently lack strong short-term catalysts or additional leverage, which intensifies selling pressure in low liquidity conditions.

Lee's key argument is based on technical analysis conducted by advisor Fundstrat. Bitcoin near $77,000 and Ethereum near $2,400 are levels where price and timing have historically converged at turning points—often marking local lows. Furthermore, on-chain data shows improvement: the number of active Ethereum addresses is growing parabolically, indicating growing user adoption. At the same time, Wall Street continues to build infrastructure around cryptocurrencies (ETFs, custody, new products), creating a solid base for future growth.

Lee notes that the broader economy remains healthy, but political uncertainty in Washington—administrative decisions and the nomination of a new Fed chairman—is causing heightened volatility. "These are the moments the market likes to test," he said, warning that the uncertainty could persist until at least the middle of the year. What do you think about Tom Lee's thoughts?