Bitcoin and Ethereum reverse gains after strong start to 2025
With markets now firmly in the homestretch for the end of the year, the crypto sector remains in a daze following its October collapse.
After being one of the best performing assets over the first nine months of 2025, with Bitcoin rising more than 35% to its October high of $126,272, it is now down 5.25% year-to-date (YTD) at its current price of $88,480. Ethereum suffered a similar fall from grace. At its current price of $3,005, it is down 9.80% year to date, a stark contrast to the nearly 50% rise in August.
The impact of this correction has left the outlook for Bitcoin and Ethereum uncertain, a sentiment perhaps best illustrated by the conflicting views presented recently by two research strategists at US firm Fundstrat Global Advisors.
Analysts Divided on Crypto Outlook as Uncertainty Grows
Tom Lee, the famous co-founder and head of research, remains publicly optimistic. He predicts that Bitcoin could reach $250,000 within a few months and calls Ether at around $3,000 “vastly undervalued.” Notably, Lee is also the chairman of BitMine, a company aiming to become the world’s first Ethereum treasurer.
However, in a recent internal client note, Sean Farrell – head of Fundstrat’s digital asset strategy – caused a stir by outlining a more cautious short-term view. Farrell predicts Bitcoin will fall to between $60,000 and $65,000 in the first half of 2026, citing risk management issues and the possibility of further withdrawals.
Tom Lee explained this disagreement by stating that the views reflected different mandates: his own long-term macroeconomic optimism versus Farrell’s short-term tactical caution.
Our point of view is more in line with that of Farrell. This is based on our technical view presented here two weeks ago (and updated below), reinforced by price weakness overnight as Bitcoin retreated from the high of $90,536 it hit earlier in the session, despite a favorable backdrop of rising stocks, rising gold prices and a US dollar.
