If you've been calling for Bitcoin (BTC) to collapse, Tom Lee has some news you probably won't like. The Fundstrat co-founder and head of research is back with a bold call: Bitcoin isn't finished. In fact, he thinks the cryptocurrency is gearing up for a run that could push it to fresh all-time highs by January.

The Case for New Records

Lee isn't hedging here. He told CNBC that the market is badly misjudging what happens when liquidity conditions flip, fund managers scramble to catch up, and the Federal Reserve shifts away from years of monetary tightening. Despite Bitcoin's rough November, Lee sees a setup for a major move higher.

His specific forecast: Bitcoin doesn't just recover from recent weakness—it "can make a new all-time high by January."

Quantitative Tightening Ends Today

The macro catalyst Lee is watching? The end of quantitative tightening, which he says happened today. The Fed has been shrinking its balance sheet since April 2022, steadily draining liquidity from the financial system. Lee calls this a "pretty big headwind for market liquidity" that's been weighing on assets across the board.

Now that headwind disappears. And according to Lee, the historical playbook is encouraging. When QT last ended in September 2019, markets rallied 17% within three weeks. If that pattern holds, Bitcoin could be in for a serious surge.

From Washout to Performance Chasing

Lee also points to November's market action as setting up a rebound. The broader market dropped 6%, while AI stocks and crypto took even sharper hits. That created what he calls an emotional washout, with many fund managers essentially giving up and writing off the rest of the year.

But now? Lee expects December strength to trigger "performance chasing" as those same managers rush back in to salvage their annual numbers. Momentum doesn't need a miracle, he argues—just a spark.

The Fed Pivot Matters

Of course, everything hinges on the Federal Reserve. A dovish shift would be "a tailwind," and Lee is clear about his outlook: "I don't think the Bitcoin high is in place." He expects crypto to rally alongside equities because "animal spirits" tend to return when liquidity does.

Translation: when money starts flowing back into markets, investors get confident again. And when investors get confident, they chase assets that have momentum. Right now, Lee thinks Bitcoin is positioned to be one of those assets.