Fundstrat’s Head of Research, Tom Lee, told CNBC that he expects a significant rally in cryptocurrencies by the end of 2025, driven by improving technical indicators and easing market conditions following recent deleveraging events.
Lee noted that the crypto market faced its largest liquidation event in five years on October 10, triggered partly by escalating U.S.–China trade tensions.
Despite this, Bitcoin and Ethereum have shown resilience, with open interest levels now at record lows while technical signals turn positive.
“I think we’re almost through that,” Lee said. “You’re going to see a crypto rally into the end of the year. It really does help to see JPMorgan say they’re open to using crypto as collateral. That’s a pretty bullish signal.”
Bitcoin and Ethereum Open Interest hit historic lows
Lee emphasized that Bitcoin’s limited downside, falling only about 3–4%. Despite the historic deleveraging, BTC demonstrates its growing strength as a store of value.
He compared this resilience to gold, noting that such stability would typically be seen as validation of an asset’s long-term reliability.
He also highlighted Ethereum’s underlying growth, citing rising activity on both its Layer 1 and Layer 2 networks due to stablecoin adoption, even though the price has yet to reflect this expansion.
Beyond crypto, Lee reiterated his optimistic view on broader markets, maintaining Fundstrat’s bullish stance on the S&P 500, which he expects could rise another 4–10% by year-end as the Federal Reserve resumes rate cuts and market skepticism fades.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team
