Bitcoin Strength Could Mark Turning Point for Equities, Expert Says
Tom Lee of Fundstrat sees Bitcoin’s recent price action as a potential green light for a broader stock market rebound.
Speaking on CNBC’s Squawk Box, Lee pointed out that Bitcoin has climbed back above its April 2 levels—the day former President Trump reignited trade tensions with new tariffs. For Lee, this rebound isn’t just about crypto—it may be a signal that equities are poised for a similar move higher.
He believes the S&P 500 could still push toward 5,800 this year, arguing that markets have consistently underestimated corporate resilience. From the pandemic to inflation spikes and the Fed’s aggressive tightening, companies have weathered numerous economic storms. Lee says this latest tariff wave might prove less damaging than feared, especially if corporate earnings continue to hold up.
Beyond earnings, he notes that key market drivers—such as mega-cap tech stocks, Tesla, and Bitcoin—are all showing signs of recovery. The resurgence in Bitcoin, in particular, stands out as a leading indicator for risk appetite.
At the time of his remarks, Bitcoin was trading near $93,800, while the S&P 500 hovered just below 5,700.
Lee also touched on interest rate policy, arguing that inflation trends support the case for the Federal Reserve to begin easing. He noted that Europe’s central bank has already cut rates, despite facing similar inflation risks from tariffs. According to Lee, if U.S. inflation were measured the way Europe calculates it—excluding shelter—it would appear even lower, further justifying a potential rate cut. He suggested the Fed might be overly cautious and that monetary conditions in the U.S. are significantly tighter than in Europe.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
