TechFlow news, January 21 — According to Cointelegraph, Tom Lee, chairman of Ethereum treasury firm BitMine, warned investors of a "painful decline" in cryptocurrency and stock markets in 2026 due to geopolitical tensions, though he expects markets to rebound by year-end.
Lee forecasts a potential 15% to 20% pullback in equities this year, but anticipates a strong market close by year-end, driven by the Federal Reserve's dovish pivot and the conclusion of last year’s quantitative tightening. For Bitcoin, Lee still expects it to reach new all-time highs this year.
Lee noted that the recent divergence between cryptocurrency and gold prices is partly attributable to deleveraging cycles, which periodically shock the market and severely impact market makers. He believes such market disruptions will continue to affect market stability until cryptocurrencies achieve broader mainstream adoption and greater institutional support.
