Fundstrat's Tom Lee Sees Bitcoin Breaking the 4-Year Cycle, Doubles Down on $250K Target

Tom Lee, co-founder of Fundstrat, has reiterated his bullish stance on Bitcoin, predicting the cryptocurrency could break its traditional four-year cycle this year. He cited several factors supporting a potential price surge, including institutional adoption and a leverage reset after the October 2025 market crash.

Lee emphasized that Bitcoin's historical pattern suggests a decline in 2026. However, he believes that tailwinds such as continued institutional interest and U.S. government support could disrupt this cycle according to Tom Lee.

In a separate statement, Lee noted that Bitcoin entering 2026 appears poised for a recovery. He pointed to the leverage reset as a positive sign for long-term stability, along with increased product development on blockchain platforms by Wall Street institutions.

Why Did This Happen?

The leverage reset in October 2025 marked a significant shift in the crypto market. Many investors and institutions had to recalibrate their positions, leading to a more stable environment for new investments. This reset allowed for a fresh start in 2026, with more cautious and institutional-driven buying activity.

Lee also noted that U.S. government support is a key factor. Regulatory clarity and policy frameworks have improved, making it easier for institutional investors to engage in the crypto space. This environment supports long-term investment and could lead to a sustained upward trend for Bitcoin.

What Analysts Are Watching

The copper-to-gold ratio is being closely monitored by analysts as a potential indicator for Bitcoin's future performance. Historically, a rising copper-to-gold ratio has aligned with major Bitcoin rallies. Currently, the ratio is showing signs of a breakout, suggesting a risk-on environment.

Copper prices are reaching record highs due to strong industrial demand, while gold remains a defensive asset. The shift in this ratio may signal improved economic conditions and increased speculative activity across asset classes.

Additionally, Bitcoin is expected to benefit from gold's rally. Lee believes that gold's performance often precedes Bitcoin's movements, and the recent strength in gold could support further gains for Bitcoin.

Why the Move Matters

Copper demand is expected to rise significantly due to the AI and defense sectors. S&P Global has forecasted a 50% increase in copper demand by 2040. This demand is driven by the electrification of the global economy and the rise of AI infrastructure.

The growing demand for copper highlights the importance of this metal in modern technology. As AI and defense spending increase, so will the need for copper. This trend supports the idea that Bitcoin could benefit from the broader economic conditions that favor industrial and technological growth.

American Lithium Minerals Inc. has also expanded its portfolio with new copper and silver projects in Chile. The acquisition of the La Grande Plata and Furano projects marks a significant step into the Chilean mining market. These projects could provide substantial upside for the company and contribute to the global supply of copper and silver.

The expansion of American Lithium Minerals into Chile aligns with the growing demand for copper and silver. These metals are essential for various industries, including renewable energy and electronics. The company's strategic move could help meet the rising demand and support economic growth in the region.