BTC, ETH are significantly down from their 2025 peaks, but analysts call it a short-term dip

As 2026 gets underway, digital currencies are still in a difficult period, but despite significant price declines over the past year, some analysts think brighter times are coming.

Ethereum has declined even more precipitously than Bitcoin, which has lost between 45 and 50 percent since its 2025 peak. The second-largest cryptocurrency has dropped 60% from its previous highs and is currently trading close to $2,000.

Analysts predict a strong rebound ahead

Many in the industry are calling this downturn a “mini winter” or brief bear market rather than the start of a longer slump that could last several years.

Tom Lee, chief of research at BitMine Immersion Technologies and Fundstrat, is optimistic about the direction of pricing. Lee advised investors to purchase during price declines rather than attempting to anticipate precise market bottoms while speaking at the Consensus Hong Kong 2026 conference.

Gold had a great run in 2025, but Lee noted that it might have peaked, which might let Bitcoin beat it this year. He also mentioned Ethereum’s history of recovering from significant selloffs.

Since 2018, Ethereum has experienced eight 50%+ drops, each followed by a sharp V-shaped recovery. Each time, the cryptocurrency recovered in a sharp V-shaped pattern, with prices climbing back up as fast as they had fallen.

On Rug Radio with host Farokh Sarmad, Lee described current market conditions as needing time to work through problems, not a deep bear market. He said he has no regrets about aggressively buying Ethereum, viewing it as essential for growing areas like stablecoins, artificial intelligence integration, and the creator economy over the next 15 years.

Lee issued audacious price projections for 2026, predicting that Ethereum would touch $12,000 to $22,000 and Bitcoin might reach $200,000 to $250,000. These goals are predicated on the two cryptocurrencies’ past price correlations.

Technical analyst Tom DeMark, who advises BitMine, suggested Bitcoin could find support around $60,000. For Ethereum, he said the cryptocurrency might need to briefly dip below $1,800 or around $1,890 to form what he called a “perfected bottom” before starting a sustained climb higher.

Lee indicated the broader crypto winter could wrap up as soon as this month or by April at the latest, pointing to improving economic factors and late-cycle market sentiment.

Wall Street firms continue buying despite losses

Large institutions are still making purchases, but regular investors are still dubious. BitMine has rapidly increased its Ethereum holdings, now holding over 4.326 million ETH, or roughly 3.58 percent of the total supply. To generate extra returns, a large portion of this cache is staked.

As part of its strategy to become the largest corporate Ethereum holder, the corporation continues to purchase more every week, despite sitting on unrealized losses.

Big Wall Street companies have also been involved. Cathie Wood’s company, Ark Invest, recently purchased millions of shares in its exchange-traded funds. This indicates that institutional interest in stocks linked to Ethereum is still high.

Other analysts have also weighed in. Standard Chartered calls 2026 “the year of Ethereum,” predicting ETH to reach about $7,500 by year-end. The bank cites growing stablecoin use, real-world asset tokenization, and network improvements as key drivers, but warns about broader economic risks.

It has lowered its previous targets while still seeing Ethereum to outperform Bitcoin if investment flows and scaling solutions take hold.

J.P. Morgan-linked projections suggest trading in the $7,000 to $9,000 range early this year under favorable conditions.

Lee’s erroneous 2025 estimates had many question his dependability. Although he had set goals for Ethereum in the $7,000–$9,000 area and Bitcoin above $150,000–$200,000, his calls were unsuccessful due to market instability.

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