Tom Lee, Head of Research at Fundstrat, Recently Spoke with CNBC, Suggesting That the Broader Market May Be Approaching a Bottom

Tom Lee, Head of Research at Fundstrat, recently spoke with CNBC, suggesting that the broader market may be nearing a bottom, potentially as soon as this week.

Tom Lee, Head of Research at Fundstrat, recently spoke with CNBC, suggesting that the broader market may be nearing a bottom, potentially as soon as this week.

Lee's outlook comes amid economic uncertainty as President Trump navigates his first 100 days in office. Several factors are contributing to market volatility, including the Department of Government Expenditure (DOGE) program, which imposes austerity measures that reduce public spending, and the tariff policies creating further uncertainty for businesses and investors.

Bitcoin (BTC) has experienced yet another reversal in price, filling in Friday's CME gap and currently sitting at $83,000—down over 10% this year. Meanwhile, the Nasdaq 100 has also dropped nearly 10%, with another similar decline would trigger a bear market.

Lee points to Friday’s upcoming job data as a key event that could dictate short-term market direction. If the data is worse than expected, he anticipates an initial wave of panic, but Lee believes it could also prompt the Federal Reserve to accelerate interest rate cuts.

Currently, the futures market is pricing in 75 basis points of cuts for this year, which would bring the benchmark federal funds rate to a range of 3.50%-3.75% by year-end. So far, the Fed has already implemented 100 basis points worth of cuts in this cycle.

Lee also addressed bitcoin’s struggles, noting that its recent downturn is not driven by negative news but rather by cyclical market forces. He sees a potential short-term price target of $62,000 but still see's bitcoin finishing over $150,000 by end of the year.

Tom Lee, Head of Research at Fundstrat, is known for his bullish market calls and his deep knowledge of the financial markets. He is a regular contributor to the financial press and is frequently interviewed by the media.

Lee's outlook on the market comes as the market has been faced with a triple whammy of bad news. Firstly, the Department of Government Expenditure (DOGE) program, which is part of the government's broader austerity measures, is expected to reduce public spending significantly this year. This will have a negative impact on economic growth and could lead to further job losses.

Secondly, the Trump administration's tariff policies have been increasing uncertainty for businesses and investors. The administration has imposed tariffs on goods from China, Mexico, and Canada, and it is unclear what the long-term implications of these tariffs will be.

Finally, the market has also been sensitive to any changes in the Federal Reserve's monetary policy. The Fed is expected to begin raising interest rates later this year, and any indication that the rate hike cycle could be delayed or stalled could lead to to a selloff in the market.

Despite these challenges, Lee believes that the market is nearing a bottom and could rally sharply from current levels. He points to several factors that support his bullish view.

First, the market has already priced in a significant amount of bad news. The S&P 500 index is down about 10% from its all-time high, and the Nasdaq 100 index is down nearly 15%. This downturn has been driven by concerns over the trade war, the government shutdown, and the slowdown in the Chinese economy.

However, Lee believes that these concerns are largely priced into the market and that the market could begin to rally once these worries begin to abate.

Second, Lee anticipates that the upcoming job data on Friday could be a key event to watch for in the short term. If the data comes in worse than expected, it could trigger an initial wave of panic as traders react negatively to bleak economic indicators.

But on the flip side, weaker than expected jobs numbers could also prompt the Federal Reserve to accelerate interest rate cuts in an effort to salvage the floundering economy. Currently, the futures market is pricing in 75 basis points of cuts for this year, which would bring the benchmark federal funds rate to a range of 3.50%-3.75% by year-end. So far, the Fed has already implemented 100 basis points worth of cuts in this cycle.

Third, Lee sees bitcoin (BTC) continuing to struggle as it fills in Friday’s CME gap and trades down over 10% for the year to reach $83,000. In another similar move, the Nasdaq 100 is approaching another 10% decline, with another similar drop pushing it into bear market territory.

Bitcoin is now down 10% from Friday's close, having filled the gap from Friday's CME expiry. It is now testing the key $80,000 support level. A move below this level could open the way for further losses to the next level of support at $70,000