The crypto market is showing signs of a potential recovery as key indicators start turning in its favor. Experts suggest that momentum for the markets could finally be picking up as we enter the final weeks of 2025.
In a recent one interview Joining CNBC, Fundstrat’s Tom Lee shared a bullish view on both traditional markets and cryptocurrencies.
The market has recently undergone a major shake-up. Lee notes that on October 10, crypto saw its largest liquidation event in five years, driven in part by rising trade tensions between the US and China. Even two weeks later, he’s noticing ripple effects hitting the market.
A year-end crypto rally?
However, despite 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 is at a record low at a time when the technicals for both Bitcoin and Ethereum are positive. So I think you’ll see a crypto rally towards the end of the year,” he said.
He also pointed to institutional signals, such as JPMorgan being open to using crypto as collateral, as a key bullish factor.
Bitcoin’s resilience amid market stress
Lee also highlighted that despite recent historic deleveraging, Bitcoin was only down 3-4%. He believes this demonstrates Bitcoin’s growing role as a reliable store of value. He also compared it to gold, noting that a similar event in the gold market, causing such a small decline, would normally be seen as a strong validation of the asset.
He also noted that Ethereum is showing strong growth, especially in activity on both its Layer 1 and Layer 2 networks, powered by stablecoins. While this growth is not yet fully reflected in Ethereum’s price, he notes that fundamental activity on Ethereum is picking up.
Beyond crypto, Lee believes the S&P 500, which is already up more than 15% this year, could rise another 4 to 10% by year’s end, buoyed by Fed 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 on the verge of breaking the daily ascending triangle. In the meantime, weekend price promotion suggests that Bitcoin is showing relative strength and is currently outperforming its 16-week average trend.
With key indicators improving and institutional interest growing, crypto markets could see renewed momentum, paving the way for a year-end rally.
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