In recent statements, Tom Lee, the Chairman of BitMine, has highlighted that the recent downturn in the cryptocurrency market, particularly Bitcoin, is not a reflection of diminishing adoption or inherent weaknesses in the sector. Instead, Lee contends that the crash is largely due to significant imbalances on the balance sheets of certain market makers.
Lee elaborated that such financial discrepancies can lead to forced liquidations and subsequent aggressive selling, creating panic within the market. He likened the current state of affairs to “sharks circling weakened prey.” In a recent interview, he forecasted a potential drop of 50% in Bitcoin prices, underscoring the fragility of the current market framework.
The cryptocurrency has faced challenges bouncing back after falling below crucial support levels, while Ethereum has also encountered similar selling pressure. Despite the prevailing turmoil, Lee remains optimistic, labeling this phase as a temporary setback that stems from structural stress rather than an outright collapse in the market”s fundamentals.
He urges caution regarding the use of leverage in this volatile environment. Lee pointed out that traders relying on borrowed funds are experiencing the highest levels of liquidation. He emphasized that now is not the ideal moment for taking unnecessary risks.
Lee”s long-term outlook on Ethereum remains positive, maintaining his belief in an impending ETH supercycle driven by Wall Street”s increasing interest. His confidence is bolstered by BitMine”s ongoing acquisitions of Ethereum. He reiterated that the trend of traditional finance embracing blockchain technology continues unabated, serving as one of the most influential factors propelling the industry forward.
Looking ahead, Lee anticipates a recovery could commence within six to eight weeks, likely following the Thanksgiving holiday.
In parallel to the crypto market”s struggles, the geopolitical landscape is evolving. Treasury Secretary Scott Bessent remarked during a Fox News interview that a rare earths agreement between the United States and China is expected to be finalized by Thanksgiving. This deal aims to circumvent tariffs and prevent restrictive export regulations on essential minerals used in various industries, including defense and technology.
Bessent expressed confidence that China would uphold its commitments, citing positive dialogues between U.S. President Trump and Chinese President Xi. He noted that the agreement would build upon last month”s framework, which paused new tariffs on Chinese imports.
