The crypto market is bracing for potential turbulence as an internal report from Fundstrat Global Advisors warns of significant price corrections for major cryptocurrencies in early 2026. This outlook presents a sharp departure from the bullish predictions typically associated with the firm’s co-founder, Tom Lee, stirring conversations among investors navigating the unpredictable waters of digital assets.
A Cautionary Outlook from Fundstrat
The report, allegedly drafted by Sean Farrell, the head of digital asset strategy at Fundstrat, paints a bearish picture for several leading cryptocurrencies. According to leaked details circulating on social media, Bitcoin, which is currently trading near $88,000, may tumble to a range of $60,000 to $65,000. Ether, sitting at approximately $3,000, could fall to between $1,800 and $2,000. The prediction for Solana suggests a price decrease to between $50 and $75. These projected levels might present attractive buying opportunities later in 2026, but the report emphasizes the likelihood of a rocky first half for the market.
While the authenticity of the report remains unverified by external sources, and Fundstrat has not officially released or commented on it, speculation is rampant over the implications of these forecasts. It seems that the cautious approach outlined within the report has raised questions about the sustainability of the current market rally.
Contrasting Perspectives from Tom Lee
Notably divergent from the internal report, Tom Lee has recently reiterated his optimistic outlook for cryptocurrencies. During a presentation at Binance Blockchain Week in Dubai, Lee boldly asserted that Bitcoin could soar to $250,000 within a few months. Furthermore, he categorically labeled Ether’s current valuation as “grossly undervalued,” accentuating his unwavering confidence in its future performance.
Tom Lee’s Fundstrat is turning bearish on H1 2026.
In a recent note, the fund warned of a major crypto correction.
What they expect:
BTC: $60K–$65K
ETH: $1.8K–$2K
SOL: $50–$75
If this plays out, many won’t be ready. Would you panic or stay patient?— Evan Luthra (@EvanLuthra) December 20, 2025
Lee also provided a fascinating comparison, stating that if Ether returns to its eight-year average against Bitcoin, its price could reach approximately $12,000. He further added that a reversion to the ETH/BTC ratio from 2021 could raise Ether’s value closer to $22,000. In a more optimistic scenario, with a ratio of 0.25, Ether could exceed $60,000. Lee has drawn parallels between Ether’s potential growth trajectory and Bitcoin’s surge since 2017, suggesting that Ether may be entering a new “supercycle” phase.
Growing Institutional Interest in Ethereum
Despite the sobering projections from Fundstrat’s internal report, institutional interest in Ethereum continues to gain momentum. BitMine, a company linked to Lee, made headlines earlier this month with a significant acquisition, securing over 138,000 ETH in just one week, which has boosted its total holdings to approximately 3.9 million ETH, representing more than 3.2% of Ethereum’s overall supply.
This acquisition underscores the ongoing belief among large investors that Ethereum holds significant long-term value. As the market contemplates the ramifications of Fundstrat’s internal strategies alongside Lee’s public forecasts, the resulting divide illustrates the complexities of navigating predictions in an industry characterized by volatility. Institutional uses of Ethereum, particularly in decentralized finance, are likely to sustain interest amidst the shifting market landscape.
As discussions and debates continue, all eyes will remain fixed on how these predictions unfold in 2026 and the broader implications for the crypto ecosystem.
