Bitcoin Crash Alert? Fundstrat Sees 35% Correction Ahead in 2026
Top asset manager Fundstrat is quietly warning its clients to get ready for a significant cryptocurrency sell-off in early 2026
Quick overview
- Fundstrat warns clients of a potential 30% to 35% drop in Bitcoin prices by early 2026, despite maintaining a bullish public stance.
- The firm identifies macroeconomic risks and market volatility as key factors that could impact digital assets in the near term.
- Analysts predict significant downside targets for Bitcoin, Ethereum, and Solana, with Bitcoin expected to fall to $60,000 to $65,000.
- Despite the anticipated correction, Fundstrat's Tom Lee remains optimistic about long-term gains, viewing the sell-off as a buying opportunity.
Top asset manager Fundstrat is quietly warning its clients to get ready for a significant cryptocurrency sell-off in early 2026, which goes against the bullish tone the company’s been shouting from the rooftops in public. According to a confidential strategy note, Bitcoin could plunge by as much as 30% to 35% to the $60,000 to $65,000 level, a drop from what they expect to be the late 2025 high.
The firm is clear that this is just a tactical correction, not the end of the larger crypto bull market. Analysts point out that right now we’ve got some very serious macroeconomic risks that are causing all sorts of tension – tighter financial conditions, unresolved policy uncertainty, and a general feeling among investors that they’re taking on too much risk. These factors could really put the squeeze on digital assets before mid 2026.
This warning comes at a time when the crypto options market is clearly forecasting a rough ride – large options expiries for Bitcoin and Ether suggest we’re due for serious price volatility in the months to come, which could lead to nasty short-term price swings.
Downside Targets for Ethereum, Solana, and Co
Fundstrat’s internal note doesn’t just cover Bitcoin – they also outline what they think could go wrong for some of the other big altcoins in the first half of 2026. They think Ethereum in particular is going to feel the pinch as liquidity dries up and speculators get squeezed.
Key potential downside zones highlighted by the analysts are:
- Bitcoin: $60,000 to $65,000
- Ethereum: $1,800 to $2,000
- Solana: $50 to $75
The theory is that Bitcoin would take the biggest hit because it’s the largest player in the market. Still, Fundstrat is keeping a close eye on Ethereum’s relative performance against other risk assets to see how it handles any correction.
Why Tom Lee Remains as Bullish as Ever
Now you might be thinking that a significant correction like this would make Fundstrat’s boss and head of research, Tom Lee, change his tune – but nope. He’s still predicting new all-time highs for both Bitcoin and Ethereum, and he’s saying that the volatility we’re seeing right now is actually a sign that bigger gains are on the way – and that patient investors will be rewarded when the dust settles.
Fundstrat says this sell-off is a lovely buying opportunity – once markets settle near these support zones, they expect conditions to improve in the second half of 2026 and set the stage for another leg up. But the contrast between the private warning and the public optimism has got everyone in the crypto trading community talking, and investors are being told to be careful in the short term, even if the long-term picture is still looking pretty bright.
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