After months of bruising declines, bold predictions, and growing skepticism, one of Wall Street’s most recognizable crypto bulls is once again calling a turning point.
Tom Lee, co-founder of Fundstrat, says the long-running crypto downturn is entering its final chapter, arguing that deteriorating sentiment and prolonged weakness are classic signals of a market bottom forming.
“We should be pretty close,” Lee said in a recent interview. “Sentiment is terrible. The price action’s been bad.”
📉 A Final Capitulation Phase?
Lee’s outlook leans heavily on technical analysis from veteran strategist Tom DeMark, whose models suggest that major cryptocurrencies are approaching exhaustion levels after failing to hold key supports earlier this year.
According to Lee, price action has already moved close to projected downside targets, with the possibility of “one more undercut” before a durable recovery takes hold. He believes the broader downturn could conclude as soon as April if macro conditions stabilize.
The call frames the current environment not as a collapse—but as the late stage of capitulation, when sellers are largely spent and long-term investors quietly begin rebuilding positions.
🤔 Skepticism Lingers After Missed Mega-Bull Calls
Not everyone is convinced.
Lee’s renewed optimism follows a rocky year for forecasts. Earlier projections that crypto prices could surge dramatically in 2025 failed to materialize, drawing sharp criticism from traders who accuse the strategist of being persistently early—or overly optimistic.
Major digital assets remain deeply below their all-time highs, with declines of roughly 45% to 60% from peak valuations, leaving many investors wary of fresh bottom calls.
For critics, the question is simple: Is this another premature prediction—or the real inflection point?
🥇 Why Gold Is Winning the Capital War
Lee also addressed a puzzle that has frustrated crypto investors: why traditional safe-haven assets have surged while digital assets lagged.
He argues that gold’s explosive rally created a powerful fear-of-missing-out effect, siphoning capital away from crypto markets as investors chased momentum in precious metals.
According to Lee, some of the same forces that usually benefit both gold and digital assets—such as easing monetary policy and a weaker U.S. dollar—are now being overshadowed by deeper fears about global financial stability.
“If the monetary system itself is being questioned outright,” he warned, “that’s really bad for crypto,” because investors may prefer tangible hedges over emerging technologies during periods of uncertainty.
🏦 Wall Street Isn’t Waiting — Institutions Keep Buying
Despite price struggles, institutional investors appear far less hesitant.
Asset-management titan BlackRock boosted its stake in BitMine by roughly 166%, bringing its position to about $246 million by the end of 2025, according to regulatory filings.
Meanwhile, ARK Invest, led by Cathie Wood, added more than 200,000 shares across its ETFs in recent days—an aggressive vote of confidence in Ethereum-linked infrastructure plays.
The institutional accumulation suggests that, even amid price weakness, large asset managers continue positioning for blockchain’s long-term role in finance rather than trading short-term cycles.
Further validation has come from Europe as Amundi, the continent’s largest asset manager, launched a tokenized fund on blockchain rails—another sign that traditional finance is experimenting with on-chain systems regardless of market mood.
🔄 A Market Divided Between Doubt and Deployment
The contrast is striking:
Retail sentiment: bruised, skeptical, and cautious after prolonged losses.
Institutional behavior: quietly accumulating infrastructure plays and strategic exposure.
Macro backdrop: uncertain enough to support hedges like gold, but still accommodative for risk assets over time.
This divergence often appears near major cycle transitions, when headlines remain pessimistic even as foundational capital flows begin shifting direction.
🔮 Is This the Beginning of Spring — or Another False Dawn?
Lee’s latest prediction may ultimately hinge less on charts and more on macroeconomics. If inflation cools, liquidity improves, and risk appetite returns, crypto could follow the historical pattern of sharp rebounds after sentiment collapses.
If not, skepticism toward bullish forecasts may deepen.
For now, the market stands at a psychological crossroads:
caught between the exhaustion of a long winter and the fragile hope that thawing has already begun.