Tom Lee, head of research at Fundstrat and chairman of Ethereum-focused firm BitMine, believes Bitcoin is still on track to hit a new all-time high in 2024, despite some short-term challenges ahead.

Speaking on The Master Investor Podcast, Lee shared his outlook for the markets over the next couple of years. He warned that 2026 could bring a significant drop in both crypto and stock markets, mainly due to rising geopolitical tensions, political division, and potential new trade tariffs. However, he expects a strong recovery by the end of that year.

Lee predicts that the stock market might see a correction of around 15% to 20% in 2024. But he remains optimistic, saying the year could still end on a strong note. His confidence comes from signs that the U.S. Federal Reserve may adopt a more supportive stance and ease off its previous tightening policies.

He also pointed out that government decisions—especially around which industries get more support—could shape which sectors perform best in the near future.

When it comes to Bitcoin, Lee stands by his view that the leading cryptocurrency could reach a new peak this year. Although he didn’t repeat his earlier prediction of $250,000, he said a new high would show the market has moved past last October’s crash, which wiped out around $20 billion in leveraged crypto positions.

Lee explained that Bitcoin’s recent price swings have been heavily influenced by “deleveraging cycles.” These are periods when big players are forced to sell off assets quickly, which hurts liquidity and disrupts trading. He called market makers the “central bank of crypto” and said they often suffer the most during these cycles.

Until crypto becomes more widely adopted and gains stronger support from institutions, Lee thinks these shakeups will continue to cause instability in the market.

Looking ahead to 2026, Lee believes sectors like energy and basic materials will be strong performers. He also suggested that gold is still a smart addition to any investment portfolio, especially as economic uncertainty grows.

Meanwhile, Benjamin Cowen, CEO of Into The Cryptoverse, agrees with some of Lee’s views. He noted that metals did better than crypto in 2025 and expects the same in 2026. However, Cowen warned that metals could also face a steep correction later this year—and if that happens, cryptocurrencies could fall even harder.

Key takeaways:
– Bitcoin is still expected to hit a new all-time high in 2024
– A major market drop may come in 2026 before a recovery
– Deleveraging events continue to shake up the crypto space
– Energy, basic materials, and gold could be strong sectors moving forward
– Wider adoption and institutional backing are key for crypto market stability

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