BitMine\u2019s chairman, Thomas \u201cTom\u201d Lee, has weighed in on the potential reasons for the recent crypto market\u2019s performance and why he believes the prices may be near the bottom.<\/p>\n
On Monday, BitMine\u2019s chairman and Fundstrat\u2019s CIO, Tom Lee, discussed the recent market crash that has wiped out around 13% of the crypto market\u2019s total value over the past week.<\/p>\n
During an interview with CNBC\u2019s Squawk Box, the executive affirmed that the crypto market\u2019s reaction to last week\u2019s correction has been \u201cmuch worse than expected,\u201d as most cryptocurrencies retraced to eight-month lows.<\/p>\n
Lee argued that non-fundamental factors are responsible for the violent decline<\/a>, listing the lack of leverage as one of the main reasons. He explained that leverage has yet to return to the crypto industry, as it \u201csort of deleveraged in October\u201d and continues to see the ripple effect.<\/p>\n He also considers that the precious metals\u2019 massive rally in January has added pressure to the crypto market. \u201cNow, when we have gold and silver doing so well, especially at the start of the year,\u201d he asserted, \u201cthat created FOMO and was like a vortex sucking all risk appetite towards the precious metals trade.\u201d<\/p>\n BitMine\u2019s chair highlighted recent geopolitical tensions and regulatory uncertainty in the US as factors for the weakening prices. \u201cI think the broader economy\u2019s actually in good shape. So, to me, the turmoil here is (\u2026) there\u2019s a lot of uncertainty because of Washington picking winners and losers. And some of this could be the new Fed pick.\u201d<\/p>\n Meanwhile, he stated that crypto fundamentals remain strong<\/a> despite the recent price action. He expects that as long as fundamentals are good, \u201call the pieces are in place for crypto to be bottoming right now,\u201d arguing that prices have tapped key support levels and \u201cenough time has passed.\u201d<\/p>\n In BitMine\u2019s latest update<\/a>, Lee also noted Ethereum\u2019s on-chain activity and fundamentals, affirming that they have grown over the past few months even as the ETH price declined to multi-month lows.<\/p>\n \u201cDuring the crypto winter of 2021-2022 or 2018-2019, Ethereum transaction activity and active wallets declined, which is counter to what we have seen in the past 12 months,\u201d he detailed.<\/p>\n As a result, BitMine, the second-largest crypto treasury company in the world, has continued<\/a> to bet on Ethereum during the recent crypto market price correction.<\/p>\n The Monday statement announced that the firm had acquired 41,788 ETH in the past week, worth $110 million at current prices. Moreover, the latest purchase has raised BitMine\u2019s holdings to 4,285,125 ETH, 3.55% of Ethereum\u2019s total supply.<\/p>\nBitMine Bets on Ethereum Fundamentals<\/h2>\n