Tom Lee Projects Strong Bitcoin Upside With $180,000 Price Outlook

Bitcoin has stabilized in a trading range between $85,000 and $90,000 since late December 2025. After hitting a peak of $126,000 in early October, the price has faced renewed selling pressure amid macroeconomic uncertainty. This has led to mixed sentiment across traditional and digital asset markets.

Tom Lee, a managing partner at Fundstrat Global Advisors, has signaled a bullish outlook for Bitcoin. He projects that the cryptocurrency could reach as high as $180,000 in the long term. His forecast is based on improving liquidity, regulatory clarity, and growing institutional demand.

Lee's price projection is supported by recent accumulation activity from major players in the crypto space. For example, BitMine, a leading Ethereum treasury company, continued its aggressive buying of ETH while also staking large portions of its holdings. These actions suggest a broader trend of institutional confidence in digital assets.

Why Did This Happen?

Bitcoin's price has been affected by year-end tax-loss selling and reduced institutional participation during the Christmas period. This led to a period of consolidation and weaker ETF inflows. However, the market has begun to show signs of stabilization, with ETFs recording inflows of $335 million in early January 2026.

The U.S. spot Bitcoin ETFs ended the year with $31.77 billion in net inflows, a historic figure that reflects the growing acceptance of crypto in traditional finance. BlackRock's iShares Bitcoin Trust (IBIT) alone captured $24.7 billion of these inflows.

Institutional investors have increased their crypto exposure at the start of 2026. On January 2, spot Bitcoin and Ethereum ETFs recorded their largest daily inflows in weeks. Bitcoin ETFs attracted $471.3 million, while Ethereum ETFs pulled in $174.5 million.

The renewed inflows suggest that traditional financial institutions are treating Bitcoin and Ethereum as core assets rather than speculative plays. This shift is driven by factors such as Ethereum's staking economics and Bitcoin's fixed supply, which provide long-term value propositions.

What Are Analysts Watching Next?

Analysts are closely monitoring whether Bitcoin can maintain its current support levels. The asset has been range-bound for nearly three weeks, and a break below $85,000 could signal further downside. Conversely, a sustained move above $90,000 may indicate a resumption of the bull trend.

Regulatory developments and macroeconomic conditions will also play a key role. The Federal Reserve's upcoming monetary policy decisions and potential rate cuts could influence liquidity and investor sentiment. Additionally, geopolitical risks such as trade tensions and U.S. policy shifts remain watchpoints.

Bitcoin's correlation to traditional markets has increased in 2025. The asset now exhibits characteristics of a risk asset, moving in tandem with U.S. equity benchmarks during multiple periods. This trend may continue in 2026 as more institutional investors allocate capital to digital assets.

Long-term holders of Bitcoin have paused selling activity, shifting from net distribution to net accumulation. This behavioral change reduces overhang and signals early stabilization. On-chain data shows that these holders have shifted from selling 674,000 BTC to net purchasing 10,700 BTC in a single day.

Digital asset treasury firms have also contributed to Bitcoin's stability. Entities like MicroStrategy and BitMine have accumulated significant BTC holdings, providing a steady demand floor. These companies have continued to add to their positions even during periods of price decline.