Crypto Crash Deepens as Tom Lee Warns of “Painful Decline” in 2026 Before Late-Year Bounce

Bitcoin and other altcoins have continues its downtrend as the crypto crash worsens. Bitmine and Fundstrat’s Tom Lee has warned that this could just be the start of a major decline in 2026.

Crypto Crash Intensifies as Tom Lee Projects Further Decline

The BTC price has fallen below $90,000 after previously rallying towards the $100,000 mark. This comes amid geopolitical and tariff tensions sweeping the market.

Fundstrat head of research Tom Lee warned that there could be a “painful decline” in the crypto and other markets for most of 2026 due to the current market fundamentals.

He shared this in his latest interview in a podcast with Wilfred Frost, saying 2o26 would be quite similar to how the 2025 markets played out. However, he added that Bitcoin could still set a new all-time high this year.

Lee shared that BTC achieving this would mean the market has fully recovered from the October crypto crash that saw billions of dollars of leveraged positions wiped out.

“I think 2026 will be a really important test because if Bitcoin makes a new all-time high, we know that that deleveraging event is behind us,” he said.

To add, he also said the stock market could see corrections of up to 15% to 20%. He added that the White House’s policy shifts could decide which sectors of the global economy would perform well.

Fundstrat had earlier warned that Bitcoin could fall to $6o,000 and $65,000. They shared that most markets are generally going to be in a downtrend in the first half of the year. However, Fundstrat said this crypto crash usually comes before an upward move.

Why is the Crypto Market Down?

The crypto market responded sharply to the failure of the Supreme Court to make a ruling on the Trump Tariffs. Yesterday was fixed by the court as an opinion date, with many hopes set on gaining clarification regarding the legality of the policy made by the president of the United States.

Moreover, the current tariff differences between the United States and the European Union have affected the crypto crash. President Trump recently threatened to slap a 200% tariff on France because President Macron did not join the Board of Peace.

However, the U.S. President clarified that he would meet with major industry leaders in the Davos meeting to resolve the issue.

Lastly, the Bank of Japan recently hinted that it would be making further interest rate hikes this year. They said this was due to the crumbling yen and concerns about inflation.