Bitcoin Price Could Reach New High in January, Says Tom Lee on Fed News

TLDR

• Tom Lee predicts Bitcoin could reach a new all-time high in January 2026 due to shifting policies and leadership changes at the Federal Reserve.
• Lee remains confident that Bitcoin’s long-term bullish trend will persist despite recent price fluctuations and global market concerns.
• The potential appointment of Kevin Hassett as Fed Chair could create a more favorable environment for cryptocurrencies like Bitcoin.
• Lee anticipates Bitcoin may surpass $100,000 before the year ends and challenge its October 2024 peak in the coming months.
• Experts, including Benjamin Cowen, suggest Bitcoin’s price may drop temporarily before experiencing a strong rebound in January 2026.

Fundstrat’s Tom Lee believes Bitcoin could see a new all-time high in January 2026. Lee’s prediction follows growing expectations of a policy shift within the Federal Reserve. The potential change in leadership, with Kevin Hassett gaining momentum to replace Jerome Powell, adds to the positive outlook for Bitcoin.

Lee maintains that despite recent price drops, Bitcoin’s long-term trend remains bullish. He explained that the dip in Bitcoin’s price at the end of last month was due to concerns over tightening global market policies. The hawkish stance of the Bank of Japan further impacted global financial markets, including the crypto space.

While some experts, such as Peter Brandt, predict Bitcoin might dip to $58,000, Lee remains optimistic. He emphasized that these short-term fluctuations do not affect Bitcoin’s long-term prospects. According to Lee, Bitcoin is poised to start the new year strong, with the possibility of hitting new heights.

Bitcoin Price Prediction: Lee’s View On The January Rally

Tom Lee continues to project a powerful recovery for Bitcoin. He believes the cryptocurrency could surpass $100,000 before the year ends and challenge its October peak of $125,000. Although he acknowledges that December may not see a new high, Lee sees January as a realistic target for a record-breaking price.

Lee explained that Bitcoin’s price is sensitive to global policy shifts, particularly related to interest rates. He pointed out that the cryptocurrency often reacts to changes in expectations around the Federal Reserve’s rate cuts. A friendlier policy environment under Kevin Hassett, who is likely to replace Jerome Powell, could boost Bitcoin’s price even further.

Experts view Kevin Hassett’s potential appointment as a positive sign for cryptocurrencies. If he becomes the new Fed Chair, expectations are that he would adopt a more crypto-friendly stance. This policy shift could result in rate cuts, which would soften the dollar and increase interest in risk assets like Bitcoin.

Political Shifts and Bitcoin’s Path Ahead

The potential appointment of Kevin Hassett as Federal Reserve Chair has raised hopes for a more supportive environment for cryptocurrencies. Lee sees Hassett’s views on monetary policy as favorable for Bitcoin’s growth. As the market awaits further developments, Bitcoin’s price could benefit from the expected policy changes.

In the near term, Bitcoin’s price could see volatility, especially with the Fed’s interest rate decisions. Benjamin Cowen, another expert, has pointed to a similar pattern in 2024, when Bitcoin dropped significantly after a rate cut. He suggests that Bitcoin might hit a new low around mid-December and then recover in January.

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