Fundstrat's Tom Lee Predicts S&P 500 Surge, But What About Bitcoin?

Fundstrat strategist Tom Lee has made a bullish prediction for the S&P 500, stating that pushing above 7,700 in 2026 is 'very probable.' This forecast comes on the heels of the US stock market's recent surge, which has seen it add more than $10 trillion in value over just 29 trading days. Lee attributes this growth to the economy's resilience in the face of various risks that threatened to derail the bull market.

Lee identified three key risks that markets had to absorb at the start of the year: the Iran conflict, stress in the private credit market, and uncertainty around the incoming Federal Reserve chair. He notes that markets have navigated these challenges more smoothly than expected, with the economy showing 'remarkable strength' despite initial concerns.

However, one asset has not benefited from this growth: Bitcoin. Despite US equities setting new records, the cryptocurrency remains roughly 40% below its all-time high, sparking debate among crypto analysts about its potential recovery. Lee suggests that a rebound in Bitcoin would require it to reclaim specific price ranges and stabilize against other major cryptocurrencies.