Fundstrat Research Director Tom Lee told CNBC that he expects a strong rally in the cryptocurrency market by the end of 2025. According to Lee, this rise will be supported by the improvement in technical indicators and the easing of market conditions following the recent deleveraging. The analyst reminded that the largest liquidation event of the last five years occurred on October 10, with the escalation of US-China trade tensions. However, despite this, Bitcoin 
$111,672.87 and Ethereum 
$3,949.22He stated that he painted a resilient picture.
Signs of Recovery After Liquidation
Lee pointed out that open interest levels have fallen to record low levels and emphasized that technical signals have turned positive again. “I think we are nearing the end of this process. We will see a rally in cryptos by the end of the year,” said Lee, adding that JPMorgan’s announcement that it is open to using crypto as collateral is a “pretty strong bullish signal” for the markets.
Bitcoin and Ethereum Remain Strong
Lee said that the decline in Bitcoin remained within the range of only 3-4 percent and argued that this situation proved the power of the asset as a store of value. He stated that Bitcoin, which has a similar stability to gold, strengthens its position as a reliable long-term investment.
On the Ethereum side, Lee talks about a growth that prices have not yet reflected. Especially with the increase in the use of stablecoins, a serious intensity of activity is observed in both Layer 1 and Layer 2 networks. These developments show that the foundations of Ethereum’s ecosystem are strengthening and may have a positive impact on price movements in the coming period.
Tom Lee expressed optimism not only in crypto but also in traditional markets. He stated that Fundstrat maintains its expectation of a rise of 4 to 10 percent for the S&P 500 index by the end of the year. According to Lee, the US Federal Reserve’s resumption of interest rate cuts and the decrease in doubts in the markets will support this rise.
These statements, combined with last week’s news that BlackRock was preparing to launch a new fund for digital asset-based investment products, commented that institutional interest in crypto assets had regained strength. The growing interest of institutional actors is seen as a critical factor in determining the long-term direction of the market.
The cryptocurrency market is entering a hopeful period again in terms of macroeconomic data and the attitude of institutions as 2025 approaches. Lee’s optimistic statements, Bitcoin’s strong stance and Ethereum’s expanding ecosystem reinforce the atmosphere of confidence for investors. However, it should not be forgotten that short-term volatilities have not ended completely. Therefore, taking cautious steps when entering the market would be the best approach for investors in terms of risk management.
