Fundstrat’s Tom Lee says a potentially “meaningful low” for crypto and equities may be approaching even as sentiment remains deeply negative.
In a series of posts on X, Lee acknowledges how grim the current environment feels.
He says a steady stream of negative headlines are likely part of the bottoming process.
“As bearish as it feels out there, keep in mind: stocks and crypto bottom on ‘bad’ news – not good. We are in the midst of a wave of bad news.”
Lee’s remarks coincide with reports that the Bitcoin treasury firm Strategy (MSTR) has become the most shorted stock in the market, which he says highlights the degree of pessimism toward crypto-linked equities.
While Lee stops short of calling an exact bottom, he believes that the current wave of bad news may be setting the stage for a durable low for both crypto and stocks that have corrected sharply in 2026.
“More signs of a meaningful low in place. When a stock becomes a ‘consensus’ short, it is also a crowded trade – hence, a stock can rise on “bad news” – because the bad news is priced in.”
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