CIO of Fundstrat Capital Says Crypto Markets Are Oversold, Expects Bitcoin to Lead Rebound Amid Tariff Fears!

Tom Lee, CIO of Fundstrat Capital, believes that markets are deeply oversold. He predicts Bitcoin will lead the rebound despite concerns over Donald Trump’s policies. These policies have caused anxiety among investors, pushing the market into a more defensive state. According to Lee, BTC is well-positioned to recover as investors seek safer and more profitable assets. Its strong performance amid the downturn makes it an attractive investment, potentially impacting Bitcoin Price Prediction. Lee expects a sharp bounce back reinforcing its role in the market’s recovery.

Tom Lee: BTC Could Lead Market Rebound Amid Tariff Concerns

Tom Lee has been closely analyzing the market’s recent downturn. He believes the market is significantly oversold could lead to a rebound. Lee points out that Bitcoin could play a key role in this recovery. The pressure on traditional markets from Donald Trump tariff policies has created uncertainty. As a result, investors are looking for alternative assets. Bitcoin, with its independent nature, is a likely candidate for this.

Sunday evening, many fund managers were calling for a deep decline into 4/2, but markets are deeply oversold

– and too many are only pricing in "worst case"
– #bitcoin likely leads bounce when recovery starts

Great speaking to @JoeSquawk @BeckyQuick @andrewrsorkin on… https://t.co/DSOgaZ78uY

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) March 31, 2025

Lee forecasts that Bitcoin could surge in value as the market begins to trust it more as a safe haven. With Bitcoin’s unique position and Trump’s policies driving uncertainty, Lee sees a potential for major gains. 

Over weekend, fund managers convos: common view “economy will tank” post-4/2 liberation day

anxiety high due to:
– need clarity
– how much tariffs hurt
– fears Trump policies

Fear getting priced in. The US proved itself resilient.

Great talking to @JoeSquawk @BeckyQuick…

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) March 31, 2025

Market pessimism is rising as the S&P 500 entered correction territory, marking its largest quarterly underperformance against global markets since 1988. Tom Lee challenges fears of stagflation, suggesting growth could outperform expectations. Meanwhile, a Benzinga poll found that 48% of respondents believe the market will crash due to Trump tariffs, while 29% expect little impact, and 23% anticipate a market rise. Bitcoin could be the go-to asset for those seeking stability, offering a potential rebound as traditional markets face turbulence. This market analysis could shape Bitcoin Price Prediction for the coming weeks.

Bitcoin Holds Strong at $81K Support

The trading day of 31st March began with bearish momentum, reaching an oversold condition at $81,280.13. At 10:15 UTC, a golden cross triggered a bullish breakout, pushing the price upward. By 12:50 UTC, the price entered an overbought state. However, around 15:25 UTC, Bitcoin faced significant resistance at $83,943.10. Sellers gained control at 15:30 UTC, leading to a death cross, which resulted in a downward trend. The price fluctuated, reaching oversold conditions again at 20:00 UTC.

Chart 1, analyzed by ShwetaCW, published on TradingView, April 1, 2025

On April 1st, Bitcoin continued its upward momentum, hitting another overbought zone around 3:50 UTC. A death cross at 3:53 UTC suggested a potential reversal. According to Bitcoin Price Prediction, if the downward trend continues, the price might break the support at $81,280.13 and dip below $81K. However, if the trend reverses, it could surpass the resistance at $83,943.10, reaching up to $84K and higher. Traders will be closely monitoring these price levels to gauge the future direction of BTC’s price.

Impact of Trump’s Tariff on Bitcoin and Market Recovery

Tom Lee’s analysis suggests that Bitcoin could lead the market’s recovery amidst growing concerns over Donald Trump policies. The uncertainty caused by the Trump Tariff has contributed to a defensive stance among investors. Despite fears of stagflation, Lee remains optimistic about growth factors, seeing Bitcoin as a safe haven. This shift in sentiment could impact market behavior, particularly with the rising demand for digital assets. According to Bitcoin Price Prediction, if Bitcoin breaks above the $83,943 resistance, it may reach higher levels, potentially targeting $84K and beyond. However, if the downward trend continues, Bitcoin could test the support at $81K creating volatile trading conditions.