2026 Market Outlook: A Bumpy Ride Ahead

Head of Research at Fundstrat, Tom Lee, shares his outlook for the upcoming year.

A Challenging First Half

The market is expected to face significant headwinds in the first half of 2026. Both crypto and stock markets are anticipated to struggle due to:

• Geopolitical tensions
• Political divides

These factors are likely to contribute to a slowdown in market performance.

A Strong Recovery by Year-End

Despite the rough start, Lee predicts a market rebound by the end of the year. Key factors contributing to this recovery include:

• A more relaxed stance from the US Federal Reserve
• Potential favorable policies from the White House

Bitcoin's Expected New High

Bitcoin is forecasted to reach a new high in 2026, signaling a full recovery from the major crash in October 2025. During that crash:

• Approximately $20 billion in leveraged crypto positions were wiped out

However, Lee notes that crypto markets remain volatile and require:

• More mainstream support
• Increased institutional investment

Diverging Predictions

Not all experts agree with Lee's outlook. Benjamin Cowen, CEO of Into The Cryptoverse, has a different perspective:

• Metals are expected to outperform crypto in 2026
• A significant correction is anticipated for metals later in the year