- A leaked Fundstrat report warned of a deep correction hitting cryptocurrencies, particularly Bitcoin, Ethereum, and Solana, by the first half of 2026.
- However, a follow-up explanation from a company official noted that the projection is intended solely for risk management, rather than an overall bearish outlook.
- Fundstrat’s Tom Lee sees two scenarios that could drive ETH’s massive rally to $12K–$65K per token.
A leaked internal report from Fundstrat recently rocked the crypto community. Many saw it as an indication of market headwinds that will likely trigger a half-year-long crypto winter, negating company Co-Founder and Head of Research Tom Lee’s earlier bullish outlook.
A Deep Dive for the Crypto Market in H1 2026
Wu Blockchain, citing documents secured by crypto trader and Binance Square contributor AB Kuai Dong, reveals that Lee warned internal clients of an impending deep correction in the first half of the year. The report prepared by Sean Farrell, Head of Digital Asset Strategy, predicted that Bitcoin (BTC) could fall to a key support level at $60K-$65K per coin during the period.
Meanwhile, Ethereum (ETH) and Solana (SOL) will likely follow the premier crypto asset’s trajectory due to their high correlation with it. The correlation between Bitcoin and Ethereum is notably around 0.98, indicating almost no divergence in their relationship based on Macroaxis data. The Bitcoin-Solana correlation also shows a near-perfect correlation of 0.97.
Farrell, referring to Lee’s projection, stated that ETH may dip to a crucial support zone at $1.8K-$2K per token, while SOL might test the $50-$75 per token range.
The leaked report added caution to investors who have been bracing themselves across the “Extreme Fear” sentiment gripping the crypto market since mid-December based on the Crypto Fear & Greed Index. As a result, Farrell released a follow-up explanation on the factors that led to their analysis.
Dong, again citing the Fundstrat official, said Lee’s team arrived at the conclusion for the purpose of risk management during the first half of 2026, rather than a strong bearish sentiment. The firm’s analysts, including Lee, believe the crypto industry remains on top of a solid foundation. The Fundstrat co-founder even called 2025 the industry’s “inflection point” toward new heights.
Ethereum Preparing for a $12K-$65K Rally
Furthermore, Lee considered $3K per ETH as “grossly undervalued.” He claimed Ether has positioned itself to continue its breakout after a range-bound trajectory for five years.
Lee explained that if the asset returns to its eight-year average ratio against Bitcoin, it could be bound for a $12K per ETH rally. On the other hand, a 0.25 ratio relative to Bitcoin could propel it to $62K per ETH.
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