Tom Lee Says Crypto Is Ready to Rebound After Historic Liquidation

BitMine Chairman Tom Lee believes the market will go through a major rally before the end of the year. In a recent interview with CNBC, the man behind a $12.7 billion Ethereum treasury spoke about the current state of the cryptocurrency market, and also what he anticipates will happen before December 31. 

Bitcoin’s rebound above $110,000 and the NASDAQ’s record close this week have reignited debate over whether the risk-on trade is back. According to Fundstrat’s Tom Lee, one of Wall Street’s most vocal bulls, the answer is yes.

Despite several macro headwinds, including a government shutdown and rising tariff tensions, Lee emphasized Bitcoin’s ability to withstand selling pressure:

“Crypto had the biggest liquidation event in five years,” Lee said, referencing the October 10 selloff triggered by escalating U.S.–China trade tensions. “It was multiples larger than FTX, yet Bitcoin only dropped 3–4%. That’s a sign of strength.”

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That crash he refers to is believed to have been the result of a massive deleveraging across crypto markets, where overleveraged traders were caught off guard by the market correction. However, from his point of view, the market could be heading to recovery. He also pointed out that both Bitcoin and Ethereum are seeing record-low open interest levels, highlighting the idea that this latest drop could be reaching a bottom:

“So there are still those ripple effects, you know, two weeks later, that are plaguing the crypto market,” he said. “But I think we're almost through that because a measure like something called open interest for both Ethereum and Bitcoin is at record lows at a time when the technicals for both Bitcoin and Ethereum are flipping positive.

So I think you're going to see a crypto rally into the end of the year.”

Tom Lee also pointed out how institutional adoption of crypto could help push the market through another rally. He noted JP Morgan’s openness to using crypto as collateral as a “big deal”, reinforcing the idea that digital assets are becoming more institution-friendly and are set to play a big role in the future of financial sectors.