Bitcoin Poised for Early 2026 Breakout as Tom Lee Predicts New All-Time High

Bitcoin may be gearing up for a powerful rebound despite recent volatility, with Fundstrat co-founder Tom Lee forecasting that the cryptocurrency could set a new all-time high as early as January 2026. His bullish outlook comes amid growing speculation that Kevin Hassett is the top contender to replace Jerome Powell as the next Federal Reserve Chair—an appointment many believe would create a more favorable policy environment for digital assets.

Lee addressed Bitcoin’s recent price drop during a CNBC interview, pushing back against fears that the current bull cycle has already ended. He explained that last month’s decline was driven largely by concerns over tightening global monetary policies, including a hawkish stance from the Bank of Japan that weighed on risk assets across financial markets. While analysts such as Peter Brandt warn that Bitcoin could still revisit the $58,000 level if downward pressure intensifies, Lee maintains that these short-term moves do not alter Bitcoin’s long-term bullish trajectory.

According to Lee, Bitcoin could still surpass $100,000 before the end of the year before attempting to reclaim and exceed its October peak near $125,000. He believes January remains a realistic window for a new record high, even if a December breakout now appears unlikely.

Political shifts may further support Bitcoin’s recovery. Prediction market Kalshi shows rising confidence in Kevin Hassett becoming the next Fed Chair. Hassett is viewed as more crypto-friendly, potentially signaling quicker rate cuts and looser financial conditions—factors that historically boost interest in Bitcoin and other risk assets. Because BTC reacts strongly to changes in rate expectations, a more accommodative Fed could set the stage for a strong early-2026 rally.

Analyst Benjamin Cowen has also highlighted a pattern tied to coordinated Fed and Bank of Japan policy moves. Similar rate adjustments in July 2024 preceded a sharp Bitcoin dip followed by a swift recovery. Cowen suggests a comparable setup could emerge around mid-December, potentially marking Bitcoin’s next local bottom before a bullish shift in January.

Through a combination of macro policy trends, market sentiment, and historical patterns, Bitcoin appears well-positioned for a renewed push toward record highs.