Tom Lee Predicts 10-15% Downside For Stocks In Early 2026: Here Is Why The Ethereum Bull Sees Crypto's 'Best Years' Ahead

Market Outlook - Wall Street analyst Tom Lee predicts a bearish first half for financial markets in 2026, followed by a strong recovery [1][2] - Lee suggests that 2026 may resemble 2025, which experienced an early bear market transitioning into a bull run [2] Economic Factors - Pro-business regulations, particularly those related to artificial intelligence, upcoming mid-term elections, and new Federal Reserve leadership are expected to positively impact the market [3] - Lee anticipates a decline of 10 to 15% in the first half of 2026 due to the absence of new Federal policies [4] Cryptocurrency Insights - Lee projects significant growth for Bitcoin, stating that the best years for the cryptocurrency market are ahead [4] - Currently, there are only four million Bitcoin wallets with $10,000, compared to 900 million IRA and brokerage accounts globally with the same amount, indicating a much larger potential market [5] AI Valuation Concerns - Lee dismisses concerns regarding "absurd" AI valuations, arguing that long-term value in transformative technologies typically emerges later in their adoption cycles [6] - BitMine Immersion Technologies, led by Lee, has increased its Ethereum holdings to approximately 3.97 million ETH, valued at $12.2 billion [6]