Tom Lee, a co-founder of Fundstrat, forecast the cryptocurrency market could be very bullish over the next 12 months. U.Today, a blockchain outlet, reported on Sept. 13 that Lee said excessive leverage in the market has already been largely unwound and a historically important four-year cycle low is approaching.

Lee cited deleveraging and the approaching four-year cycle low as reasons for bullishness in October last year. He also viewed the recent sharp rebound in cryptocurrencies as part of a market price-adjustment process rather than a temporary rally.

He said crypto fundamentals continued to improve even during a prolonged period of price weakness. Unlike past crypto winters, which were marked by business closures, a lack of capital and shrinking use cases, he said this downturn has seen underlying conditions strengthen, including the spread of tokenisation.

Lee pointed in particular to growing adoption of tokenisation by major financial institutions. He said major financial institutions are building tokenised products, especially on Ethereum.

He also cited expanding artificial intelligence capabilities as a factor that could increase demand for blockchain infrastructure. Lee said AI agents may view crypto rails as more suitable infrastructure than traditional financial systems.

Lee said investors should be wary of trying to pinpoint the exact market bottom. Buying 4 weeks before the bottom or 1 week after it could both be attractive, he said, but waiting only for confirmation of a bottom could mean missing most of the upside.

He said Fundstrat's long-term observations show that crypto returns are concentrated in a small number of strong trading days. With few such explosive rallies so far in 2026, he forecast there is substantial room for further gains through year-end. He added that if cryptocurrencies continue to deliver higher returns than traditional assets, performance-chasing buying by institutional investors could follow.