Fundstrat’s Tom Lee said Bitcoin and Ethereum are positioned for a major fourth quarter if the CLARITY Act passes this year, calling it one of four catalysts he expects to drive crypto higher into year-end.
Lee’s Four Catalysts for a Crypto Comeback
Speaking in a CNBC interview, Lee laid out a multi-part case for strength in digital assets. First, he pointed to crypto’s performance relative to other asset classes, explaining it has been the best-performing macro asset in the third quarter so far, a track record he expects to draw fresh institutional allocation in September and the fourth quarter.
Second, Lee said the crypto market’s traditional four-year cycle is set to end next month, which he expects to bring back investors who had stepped away from the space. He specifically cited South Korean investors, historically a major force in crypto trading, who rotated into AI stocks earlier this year but are now showing renewed trading volume in crypto markets.
Third, Lee opened up about strengthening fundamentals building throughout the year, including strong momentum in tokenization and what he described as a breakout product launch from Robinhood, alongside broader tailwinds from generative AI adoption benefiting the sector.
The fourth catalyst, Lee said, is the CLARITY Act itself. “If Clarity Act passes, which could happen this year, and if it does, I think Bitcoin and Ethereum have a huge fourth quarter,” Lee said.
Is Crypto Winter Over?
Asked whether crypto’s recent strength offsets the declines seen over the past year, Lee said the downturn had actually been shallower than widely believed, despite significant deleveraging events, including a sharp pullback in October and two additional drawdowns earlier this year.
“I think it’s been a very shallow crypto winter,” Lee said, adding that relatively few investors currently hold crypto positions, a dynamic he believes leaves room for Bitcoin to potentially reach six-figure territory.
Bitcoin’s Rally Already Underway
Lee’s comments come as Bitcoin has already staged a recovery. Cryptocurrency markets experienced their largest weekly rally in three years during late August 2026, pushing Bitcoin back above $80,000 after months spent trading in a lower range. Altcoins also posted gains between 30-50%.
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