The crypto market is showing signs of a potential rebound as key indicators start to turn in its favor. Experts suggest that the momentum may finally be building for the markets as we head into the final weeks of 2025.
In a recent interview with CNBC, Fundstrat’s Tom Lee has shared a bullish outlook on both traditional markets and cryptocurrencies.
The market recently went through a major shake-up. Lee notes that on October 10, crypto experienced its largest deleveraging event in five years, partly triggered by rising U.S.–China trade tensions. Even two weeks later, he notes that the ripple effects were still seen in the market.
A Year-End Crypto Rally?
However, Lee believes the market is nearly through the fallout. He highlighted that open interest for both Bitcoin and Ethereum is at record lows, while technical indicators for both coins are now turning positive, which points to improving market conditions.
“I think we’re almost through that because a measure like something called open interest for both Ethereum and Bitcoin are at record lows at a time when the technicals for both Bitcoin and Ethereum are flipping positive. So I think you’re going to see a crypto rally into the end of the year,” he said.
He also pointed to institutional signals, like JPMorgan being open to using crypto as collateral, as an important bullish factor.
Bitcoin’s Resilience Amid Market Stress
Lee also highlighted that despite the recent historic deleveraging, Bitcoin only fell 3–4%. He believes that this demonstrates Bitcoin’s growing role as a reliable store of value. He also compared it to gold, noting that a similar leverage event in the gold market, causing such a small decline, would normally be seen as a strong validation of the asset.
He also noted Ethereum is showing strong growth, particularly in activity on both its Layer 1 and Layer 2 networks, fueled by stablecoins. While this growth is not fully reflected in Ethereum’s price yet, he notes that the fundamental activity on Ethereum is picking up.
Beyond crypto, Lee believes that the S&P 500, already up more than 15% year-to-date, could gain another 4–10% by year-end, supported by Fed rate cuts and investor skepticism.
Bitcoin Shows Technical Strength
Analysts remain bullish on Bitcoin as technical indicators show signs of strength. Rekt Capital pointed out that BTC is close to breaking out of a daily ascending triangle. Meanwhile, weekend price action suggests that Bitcoin is showing relative strength, currently outperforming its 16-week average trend.
With key indicators improving and institutional interest growing, crypto markets could see renewed momentum, setting the stage for a year-end rally.
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