Bitcoin Rallies Past $93K as Tom Lee Calls for New All-Time High in January
Bitcoin posts fifth consecutive session of gains, breaking above $93,000 as Fundstrat's Tom Lee predicts the cryptocurrency will hit new all-time highs before month end.
Bitcoin is on a tear. The world's largest cryptocurrency surged past $93,000 on Monday, marking its fifth consecutive session of gains and its highest level since mid-November.
Fundstrat's Tom Lee thinks this is just the beginning. "I don't think bitcoin has peaked yet," Lee told CNBC. "I do believe that bitcoin can hit a new all-time high by the end of January 2026."
The Rally Numbers
Bitcoin jumped more than 3% Monday to its highest level since November, approaching the psychologically important $95,000 mark. The cryptocurrency has now recovered significantly from its fourth-quarter slump.
Ethereum followed the rally, climbing to $3,162. XRP tested $2.14, and Dogecoin broke out of its bearish channel. The total crypto market cap climbed above $3.01 trillion.
After a 6% decline in 2025—a natural correction following 2024's 125% surge—crypto markets are showing renewed strength to start the year.
Why Bitcoin Is Moving
Several factors are driving the rally:
Geopolitical catalyst: The US capture of Venezuelan leader Nicolas Maduro over the weekend sparked a risk-on move across markets. Bitcoin, increasingly correlated with macro events, rode the momentum.
ETF flows stabilizing: After significant outflows in late 2025, Bitcoin ETFs are seeing slowing redemptions and renewed institutional interest.
Regulatory clarity ahead: The Digital Asset Market Clarity Act of 2025 passed the House and is under Senate debate. Passage in January would provide the regulatory framework crypto markets have sought for years.
Technical setup: Bitcoin held support during its Q4 correction and is now breaking through resistance levels that trapped it for months.
Tom Lee's Track Record
Lee's bullish bitcoin calls deserve attention. The Fundstrat head of research called for bitcoin to hit $100,000 back when it was trading in the $20,000s. He was early, but ultimately right.
His current thesis: bitcoin's Q4 weakness created a buying opportunity, and the combination of ETF adoption, regulatory progress, and macro conditions sets up a strong start to 2026.
"Bitcoin ultimately hit an all-time high north of $126,000 in October, but has since pulled back," Lee noted. He sees the current $93,000 level as a launching pad, not a ceiling.
Ethereum's "Supercycle"
Lee isn't just bullish on bitcoin. He called Ethereum "dramatically undervalued" and predicted ETH is "entering a supercycle similar to Bitcoin from 2017 to 2021."
That's a significant claim. Bitcoin's 2017-2021 run took it from under $1,000 to nearly $69,000—a roughly 70x return. Even a fraction of that performance would make current Ethereum prices look cheap.
The catalyst for Ethereum: expanding use cases beyond simple transfers. DeFi, NFTs, and now AI applications are all building on Ethereum's infrastructure.
Options Market Signal
Bitcoin options traders are positioning for continued upside. Bloomberg reports increasing interest in $100,000 strike calls, suggesting professional traders expect the rally to extend.
The options activity aligns with Lee's January all-time-high thesis. If traders expected bitcoin to struggle at current levels, they'd be buying puts, not calls.
What Could Go Wrong
The crypto rally faces headwinds:
Fed uncertainty: The Fed has signaled rate cuts are nearing an end. Higher-for-longer rates typically pressure risk assets including crypto.
Macro volatility: Despite Monday's risk-on move, geopolitical uncertainty remains elevated. Venezuela is just one of several global flashpoints.
Regulatory timing: The Clarity Act isn't guaranteed to pass in January. Legislative delays could disappoint markets pricing in near-term resolution.
Technical resistance: Bitcoin faces significant resistance at $95,000 and $100,000. Breaking through both requires sustained buying pressure.
Trading the Rally
For traders watching the crypto space:
Bitcoin: Key resistance at $95,000, then the psychological $100,000 level. Support at $88,000 if the rally fades.
Ethereum: Broke above $3,000, with next resistance at $3,500. Lee's supercycle call gives a longer-term framework for position sizing.
Altcoins: XRP and Dogecoin rallying alongside bitcoin suggests broad-based momentum rather than bitcoin-only flows.
The fifth consecutive day of gains suggests momentum is strong. But extended rallies eventually consolidate. Traders should watch for profit-taking as bitcoin approaches $95,000.
January Catalyst
Tom Lee's January all-time-high prediction sets a clear timeline for the market. If bitcoin breaks $126,000 before month end, Lee looks prescient. If it stalls below $100,000, questions about the bull thesis will return.
Either way, crypto is back on traders' radar. After a quiet Q4, bitcoin is moving again.