Bitcoin could hit new highs by year-end, says Fundstrat's Tom Lee

Market Overview - The S&P 500 is projected to reach 7,000 by year-end, representing a potential increase of approximately 2.5% from current levels, although this target was initially expected to be met in the first half of the year [1] - The past year has been characterized by significant market volatility, including the largest tariff hikes in history and a major bear market, which hindered the earlier forecast of reaching 7,000 [2] Market Resilience and Future Outlook - The market has shown resilience, recovering from a significant decline, but there are concerns about potential policy shocks that could lead to another 20% drawdown in the future [3] - The market has experienced three bear markets of 20% or more within the last five years, indicating a compressed history of volatility [3] Impact of Cryptocurrency - The recent turmoil in the cryptocurrency market, particularly a significant event on October 10th, has influenced broader market dynamics, with Bitcoin experiencing a dramatic decline that led to substantial liquidations [5] - Approximately one-third of market makers in the crypto space went out of business during this event, and nearly 2 million accounts were liquidated [5] - The leverage in the crypto market has been a critical factor, as the high levels of leverage contributed to the rapid decline in Bitcoin prices [6] Future of Cryptocurrency - Despite the recent downturn, there is still optimism that Bitcoin could surpass $100,000 by year-end, with expectations of significant price movements occurring within a short timeframe [8] - The cryptocurrency market is currently seen as lagging behind other sectors, particularly artificial intelligence, which is expected to lead market trends moving forward [7]