Tom Lee, the Chairman of BitMine, has made a bold prediction regarding the future of Bitcoin (BTC), asserting that the current correction phase has concluded. In a recent post on X, he indicated that the heightened fear among venture capitalists has likely marked the bottom for the recent downturn in the cryptocurrency market, suggesting a potential market reversal is imminent.
Lee”s confidence in a market turnaround is underscored by a significant move made by BitMine, which acquired $150 million worth of Ethereum (ETH) on December 4. This acquisition aligns with his theory that the capitulation of whale investors serves as a critical indicator of a market bottom. Lee stated, “That is a sign of a bottom,” highlighting his belief in the resilience of the cryptocurrency market.
Amid these optimistic predictions, JPMorgan has expressed caution regarding the midterm outlook for Bitcoin. The financial institution warned that the price of Bitcoin could face downward pressure if the investment strategy associated with it sells off its holdings. Currently, the enterprise value-to-Bitcoin holdings ratio stands at 1.13, above the critical threshold of 1.0. JPMorgan noted that the investment strategy maintains a cash reserve of $1.44 billion, ensuring that its debts are adequately serviced.
Additionally, the investment strategy has scaled back its Bitcoin accumulation significantly, adding only 9,062 tokens in the last month, a stark contrast to the 134,480 tokens acquired during the same month the previous year. This strategic shift reflects a more cautious approach to Bitcoin holdings, employing sophisticated methods to safeguard its assets, including leveraging digital credit.
Potential for Crypto Market Recovery
According to Alice Liu, Head of Research at CoinMarketCap, there is a strong possibility that the cryptocurrency market will see a revival in the first quarter of 2026, coinciding with the upcoming Binance event in Dubai. Liu stated, “We are going to see a market comeback in Q1 of 2026. February and March will be a bull market again, based on a combination of macro indicators.”
This anticipated resurgence is expected to be fueled by an increase in global money supply, driven by the Federal Reserve”s conclusion of its Quantitative Tightening policy and decreasing lending rates, which should enhance liquidity across the cryptocurrency landscape.
