Tom Lee (톰 리), chairman of the board at Bitmine Immersion Technologies, put weight on the possibility of a rebound in U.S. small-cap stocks. A blockchain outlet, U.Today, reported on Oct. 6 local time that Lee, who controls 4.9 percent of the global Ethereum supply, more than 6 million ETH, likened the Russell 2000 index to a compressed spring in October 2026.

Lee saw shifts in the direction of U.S. small business stocks as having served as leading indicators for past low market-cap cryptocurrency rallies. That means a stock market rebound signal could lead into low market-cap cryptocurrencies and undervalued altcoins.

Behind that view was JPMorgan equity strategy data. Short positions in Russell 2000 constituents surged to the 99.8th percentile, and the median short interest also topped 8 percent of shares outstanding.

Lee saw extreme bearish bets in traditional markets as potentially leading to a short squeeze. He explained that if short positions are unwound in a chain reaction, stock prices could rise sharply.

Fundstrat forecast that if U.S. labour market indicators ease, hawkish pressure at the Federal Reserve will weaken and the U.S. 10-year Treasury yield will fall below 5 percent. It said liquidity freed up by falling Treasury yields could first head to the Russell 2000 and then move into low market-cap cryptocurrencies and undervalued altcoins that have been overshadowed in recent months by bitcoin strength.

Fundstrat maintained its annual S&P 500 target at 8,200 to 8,400 despite localised pressure from the U.S. midterm elections. It assessed corporate fundamentals as still strong, with third-quarter earnings per share growth nearing 30 percent.