Tom Lee's bearish analyst predicts a potential "risk liquidation event" in the first half of the year, leading to increased volatility.

On January 7th, Sean Farrell, Head of Digital Asset Strategy at Fundstrat, stated in an interview that Bitcoin is still "pre-ordained" to reach $1 million in the long term, with strong structural tailwinds for quality crypto assets. He believes 2026 will be a "trader's market," with the first half potentially experiencing a "risk clearing event," leading to increased volatility and a possible pullback in Bitcoin to $60,000 (a deep value zone, a "buy with both hands" opportunity) . The second half of the year will see improved liquidity, policy stimulus, and AI-driven growth, presenting excellent opportunities.

Regarding Ethereum, Sean Farrell believes ETH is viewed as a "small-cap tech stock" by traditional asset managers . It benefits from the narrative of real-world asset (RWA) tokenization (145% year-over-year growth in Q3 2025, bringing higher-quality assets into DeFi and enhancing value capture). Therefore, his year-end target price is approximately $4,500.

Regarding SOL, Sean Farrell believes it will compete with ETH for RWA market share, but lacks support from traditional asset managers. Its advantages include high throughput, upgrades (such as Alpenglow and Firedancer), and potential lower inflation. Price expectations: A pullback to $50-75 in Q1/Q2, followed by a rebound to $220-260.

After the risk liquidation, Altcoin will be the "perfect cocktail"; after ETH outperforms BTC, Altcoin with reliable token economics and solid traction will perform significantly, especially those related to RWA.

Previously, Tom Lee stated in an interview that "Bitcoin may reach a new all-time high before the end of January 2026," while Sean Farrell, an analyst at Fundstrat, stated in a report on the 20th that "Bitcoin may fall to $60,000 to $65,000 in the first half of 2026, and Ethereum may fall to $1,800 to $2,000."