Fundstrat is sending two very different messages about crypto’s next chapter, depending on who is listening.
While public commentary continues to paint an optimistic picture for Bitcoin’s long-term trajectory, a separate internal outlook shared with private clients points to turbulence ahead – and a potentially sharp reset in early 2026.
- Fundstrat is privately warning clients about a possible crypto pullback in early 2026, despite remaining bullish long term.
- The firm sees macro pressure and rising volatility as triggers for a temporary market reset.
- Bitcoin is expected to lead any downside move, with major altcoins also facing potential declines.
According to an internal strategy note, Fundstrat is preparing clients for a notable market pullback rather than uninterrupted upside. The firm expects Bitcoin to retrace toward the $60,000-$65,000 zone in the first half of 2026, framing the move as a cooling-off period inside a broader bull cycle, not its conclusion.
The same scenario anticipates broad-based weakness across major altcoins. Ethereum is expected to come under pressure toward the $1,800-$2,000 range, while Solana could revisit much lower territory between $50 and $75. In Fundstrat’s view, Bitcoin would likely absorb the largest shock as liquidity tightens and risk appetite fades.
Why Early 2026 Looks Fragile
Rather than focusing on crypto-specific catalysts, the firm’s caution centers on macro conditions. Analysts highlighted tighter financial environments, unresolved policy risks, and a general pullback in speculative positioning as factors that could weigh on digital assets as the year begins.
Another concern is volatility driven by derivatives markets. Large Bitcoin and Ethereum options expiries are expected to cluster in early 2026, a setup that historically amplifies price swings. Fundstrat sees this combination of macro stress and technical pressure as fertile ground for a temporary but painful correction.
Patience Over Panic
Despite the sober near-term outlook, the internal note does not argue for abandoning crypto exposure. Instead, it stresses discipline. Fundstrat views sharp drawdowns as a recurring feature of bull markets, often setting the stage for the next leg higher.
From this perspective, the projected downside zones are not danger signals but potential accumulation levels. Once volatility fades and macro conditions stabilize, the firm believes the market could regain momentum later in the year.
Why This Clashes With Tom Lee’s Public Optimism
The private caution stands in clear contrast to the upbeat tone regularly expressed by Tom Lee, Fundstrat’s co-founder and head of research. Lee has consistently argued that both Bitcoin and Ethereum remain positioned for new highs, recently suggesting Bitcoin could reach a fresh all-time high as early as January 2026.
He has also described Ethereum prices near $3,000 as deeply undervalued, previously floating upside targets as high as $5,500 before the end of 2025. Those statements have helped reinforce bullish sentiment across the broader crypto community.
Markets React to the Split Narrative
The contrast between Fundstrat’s internal risk guidance and its public optimism has sparked discussion among traders. Some see the divergence as confusing, while others argue it reflects a common institutional dynamic.
Public forecasts tend to focus on long-term narratives and confidence-building, while private strategy notes prioritize timing, drawdowns, and capital preservation. In that sense, the two messages may be less contradictory than they appear.
Still, the episode highlights a familiar reality of crypto markets: bullish conviction and defensive positioning often coexist. As 2026 approaches, investors may soon learn whether Fundstrat’s quiet warning about a reset proves more relevant than its headline-grabbing calls for new highs.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/expert-warns-clients-of-early-2026-crypto-pullback-despite-bullish-narrative/