Market Outlook & Predictions - Analyst Tom Lee suggests 2026 presents an attractive setup for both crypto and stocks, driven by improved monetary liquidity [1][7] - Altcoin Daily reveals Tom Lee's updated Bitcoin and Ethereum price predictions for Q1 2026 [2][17] - The market anticipates a potential V-shaped recovery in crypto, influenced by the end of the US government shutdown and a potentially dovish stance from the central bank [19] - Ethereum could reach $7,000 to $9,000 by the end of January, with Bitcoin expected to surpass its all-time high [20] Factors Influencing Market - Easing monetary policy after three years of tightness and the potential appointment of a new, crypto-friendly Fed chair are expected to be tailwinds [8][19] - The prolonged muted US business cycle, with the ISM manufacturing index below 50 for 36 months (the longest stretch in its history), indicates suppressed business confidence due to inflation, Fed tightness, policy uncertainty, and tariffs, but this is expected to clear next year [8][9] - Negative sentiment and skepticism among investors, despite underlying fundamental developments, create a contrarian opportunity [10] Crypto Specific Dynamics - Bitcoin is becoming an institutional asset, attracting new buyers, including potential government involvement via the Clarity Act and strategic reserve actions [14][15] - Ethereum has significant potential due to stablecoins and the tokenization of assets by major players like BlackRock and Robinhood [15] - ETH supply on exchanges is decreasing rapidly, mirroring trends observed with Bitcoin, indicating strong buying activity during dips [12]