Tom Lee Predicts 10-15% Downside For Stocks In Early 2026: Here Is Why The Ethereum Bull S

December 16, 2025

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Wall Street analyst Tom Lee predicted on Monday a bearish first half for financial markets in 2026, but expects it to “come back in force” eventually.

Lee, who chairs BitMine Immersion Technologies Inc. (NYSE:BMNR), said that 2026 could mirror 2025, a year marked by an early bear market shifting to a bull run later on.

This assessment rang true for equities, with the S&P 500 and the Nasdaq Composite bouncing sharply from the early April sell-offs.

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Lee stated that “pro-business regulations,” particularly those linked to artificial intelligence, the upcoming mid-term elections, and the new Federal Reserve leadership, could prove “kinda good” for the market.

“It’s really going to come back in force, but it will take maybe the first half of the year to get through that because we don’t have a new Fed in the first half,” Lee said. “So, I think the first half next year could be down 10 to 15% and then a big recovery.”

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Regarding the cryptocurrency market’s outlook, Lee said that “the best years are definitely ahead,” projecting big growth for Bitcoin (CRYPTO: BTC).

“Today there are only four million Bitcoin wallets with $10,000 in them. There are 900 million IRA and brokerage accounts globally that have $10,000. So that’s a 200 times larger market,” he stated.

Like the stock market, cryptocurrencies rebounded from April lows to reach a peak valuation in early October. But since then, they’ve plunged into a sharp decline, erasing all gains recorded so far in 2025.

Lee said last week that investor concerns about “absurd” AI valuations overlook how exponential industries historically develop. He argued that most of the long-term value in transformative technologies emerges later in adoption cycles, even if early valuations appear stretched.

Meanwhile, his firm BitMine Immersion purchased another 102,259 Ethereum (CRYPTO: ETH), taking its total holdings to approximately 3.97 million ETH, valued at $12.2 billion.

Photo: Skorzewiak / Shutterstock

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This article Tom Lee Predicts 10-15% Downside For Stocks In Early 2026: Here Is Why The Ethereum Bull Sees Crypto’s ‘Best Years’ Ahead originally appeared on Benzinga.com

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