Top asset manager Fundstrat has advised its private clients to expect a pullback in Bitcoin price in early 2026. The advice is a contradiction to the projections of a new all-time high for the most popular cryptocurrency made by its co-founder and head of research, Tom Lee.
Will The 2026 Crypto Bear Market Have A Stronger Drawdown?
The internal strategy note reported that Bitcoin could decline to between $60,000 and $65,000. The report also gave downside targets of Ethereum and Solana within the first half of 2026.
The document put the likely drop as a tactical adjustment, and not the bull market’s end. Fundstrat analysts believe that the macro risks are still high even as we enter the new year.
They reference the stricter financial situation, policy uncertainties, and dwindling risk-taking. According to the report, these pressures have the potential to cause further crypto price resets before mid-year. The near-term volatility is also evident as the crypto market prepares to experience large options volatility for Bitcoin and Ethereum.
During this correction phase, the Fundstrat analysts expect Bitcoin to be the most affected. It is likely that Ether will also plunge to a range of between $1,800 and $2,000. In addition, the analysts expect Solana to plummet to the range between $50 and $75.
Why Is Fundstrat Cautious and Tom Lee on Bullish About Bitcoin?
The company underscored the fact that volatility usually comes ahead of strong upside. It claimed that disciplined patience would become important during the anticipated drawdown. Another aspect of Ethereum noted by the analysts was its relative performance with regards to other assets.
The report is optimistic in the long-term, although it is bearish in the near-term. Fundstrat states that the estimated pullback would establish a lucrative entry level.
The company believes that once the markets stabilize, the prices will be at those target zones it highlighted. Hence, the crypto market would be a better position to recover in the second half of that year.
But this secret opinion is in stark contrast to the bullish statement by Tom Lee in recent times. Lee has gone on record several times stating that Bitcoin and Ethereum are ready to rise to their new highs. Most recently, Tom Lee forecasted a new all-time-high for Bitcoin by January 2026.
These differences in predictions have led to debates within crypto trading community. A number of market participants questioned why there is a disconnect between the message that is given out publicly and the risk advice privately.
Market Reacts To Gap Between Public And Private Forecasts
Lee referred to Ethereum price at $3,000 as highly underestimated at industry gatherings and interviews. Previously, he forecasted that Ethereum might rise up to $5,500 before the end of 2025.
However, there are traders who claimed that the divergence is typical of an institutional practice, and not a deception. Another observer pointed out that such a strategy is typical of large financial companies.
Still, some interpreted the scenario as a distinction between hype and facts. Confidence is gained from the public forecasts while capital protection is based on internal outlooks.