Bitcoin (CRYPTO: BTC) doom-callers may want to sit down. Fundstrat co-founder and Head of Research Tom Lee is back, and he's not whispering — he's declaring that "the high isn't in yet," insisting Bitcoin is nowhere near done despite a bruising November.
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Bitcoin: New All Time High By January
Lee believes the market is dramatically underestimating what happens when liquidity turns, fund managers panic-buy, and the Fed finally pivots from years of tightening.
His line in the sand: Bitcoin not only recovers, but "can make a new all-time high by January."
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The Macro Trigger That Could Drive The Surge
Lee says the macro trigger is already here.
"Today is the day that QT [quantitative tightening] ends," he told CNBC, calling the balance-sheet shift a massive catalyst that investors are ignoring. The Fed has been shrinking its balance sheet since April 2022, a steady withdrawal of liquidity that Lee argues has been a "pretty big headwind for market liquidity."
Now that pressure valve releases — and history matters. The last time QT stopped, in September 2019, he notes that markets "within three weeks rallied 17%." If that playbook repeats, Bitcoin could catch a rocket.
Momentum doesn't need a miracle, just a spark. Lee says November's 6% decline in the broader market — and the sharper drawdowns in AI names and crypto — created an emotional washout. Many fund managers "threw in the towel" and resigned themselves to writing off the year.
Performance Chasing To Kick In
Now, with December setup strength, he expects "performance chasing" to kick in.
But it all hinges on the Fed. A dovish pivot is "a tailwind," and Lee didn't mince words: "I don't think the Bitcoin high is in place."
He expects crypto to surge alongside equities because "animal spirits" return when liquidity does.
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