The crypto market is showing signs of a potential rebound as key indicators start to turn in its favor. Experts suggest that momentum may finally be building for the markets as we head into the final weeks of 2025.
In a recent interview with CNBC, Fundstrat’s Tom Lee shared a bullish outlook on both traditional markets and cryptocurrencies. He noted that the market recently went through a major shake-up. On October 10, crypto experienced its biggest liquidation event in five years, partly triggered by rising U.S.-China trade tensions. Even two weeks later, the ripple effects continue to plague the market.
### A Year-End Crypto Rally?
Despite the recent volatility, Bitcoin and Ethereum have held up well. Lee highlighted that open interest for both Bitcoin and Ethereum is at record lows, while technical indicators for both coins are now turning positive—pointing to improving market conditions.
“I think we’re almost through that because a measure like something called open interest for both Ethereum and Bitcoin are at record lows at a time when the technicals for both Bitcoin and Ethereum are flipping positive. So I think you’re going to see a crypto rally into the end of the year,” he said.
Lee also pointed to institutional signals, such as JPMorgan being open to using crypto as collateral, as an important bullish factor.
### Bitcoin’s Resilience Amid Market Stress
Despite the recent historic deleveraging, Bitcoin only fell 3-4%. Lee believes this demonstrates Bitcoin’s growing role as a reliable store of value. He compared it to gold, noting that a similar event in the gold market causing such a small decline would be seen as strong validation of the asset.
Ethereum is also showing strong growth, particularly in activity on both its Layer 1 and Layer 2 networks, fueled by stablecoins. While this growth is not yet fully reflected in Ethereum’s price, the fundamental activity on Ethereum is picking up, which could lead to a significant move into the year-end.
### Traditional Markets Outlook
Beyond crypto, Lee believes the S&P 500, which is already up more than 15% year-to-date, could gain another 4-10% by year-end. This anticipated growth is supported by potential Federal Reserve rate cuts and investor skepticism.
### Bitcoin Shows Technical Strength
Analysts remain bullish on Bitcoin as technical indicators show signs of strength. Rekt Capital pointed out that BTC is close to breaking out of a daily ascending triangle. Meanwhile, weekend price action suggests Bitcoin is showing relative strength, currently outperforming its 16-week average trend.
With key indicators improving and institutional interest growing, crypto markets could see renewed momentum—setting the stage for a potential year-end rally.
https://coinpedia.org/news/fundstrats-tom-lee-predicts-year-end-crypto-rally-as-bitcoin-and-ethereum-technicals-turn-positive/