The global crypto market pulled back to about $3.23 trillion on Monday, down close to a percent from recent levels, and signs of weakness were visible across most top tokens.
According to Tom Lee, BitMine chairman and an early Bitcoin bull at Fundstrat, the current pullback does not wipe out the potential for much larger gains down the road.
Lee noted that Bitcoin rose roughly 100x from his first recommendation back in 2017, when the price was near $1,000, and he suggested Ethereum may be at the start of a similar long-term run.
BitMine Chairman Tom Lee suggested that the recent crypto market weakness may be due to one or more market makers having a “hole” in their balance sheets, with “sharks” circling to trigger liquidations and push BTC lower. He emphasized that this is short-term pain and does not…
He cautioned that investors who benefited from past rallies had to endure extreme drops — some as deep as 75% — and said present volatility could be the market “discounting a massive future.”
Market technicians and on-chain analysts are pointing to clear short-term stress. The Fear and Greed Index at 18 is one headline figure. Average RSI readings near 41 imply more selling than buying momentum right now.
To me, the weakness in crypto has the all the signs
– of a market maker (or two) with a major “hole” in their balance sheet
Is this pain short-term? Yes
Based on reports from CryptoQuant, Ether trading around $3,150 sits roughly $200 above the mean cost basis held by long-term accumulators — a level that could act as support if those holders remain patient.
Bitcoin, by comparison, has pulled back about 20% from its recent peak, while Ethereum has fallen more than 30% from its high.
Bitcoin is a volatile asset.
We first recommended Bitcoin to Fundstrat clients in 2017 (1%-2% allocation) – Bitcoin 2017 ~$1,000
2025, Bitcoin 100x from our first recommendation
Ethereum’s path this year diverged from Bitcoin for a while: ETH topped out at $4,940 in August, while Bitcoin pushed to a peak above $126,000 in October.
That gap left Ether lagging for months even as Bitcoin made fresh highs. Now, with ETH nearer to where long-term holders bought in, some analysts see a potential floor forming.
Reports have disclosed that these accumulators have been “patiently stacking,” and their cost positions matter for near-term price action.
Smaller large-cap coins are holding weaker ground. XRP was trading near $2.20, BNB around $932 and Solana close to $138, with most of last week’s gains fading.
Lee added that he expects signs of recovery and stability within six to eight weeks. He advised against using borrowed funds now, warning that forced sell-offs can accelerate losses.
According to his remarks, aggressive positions designed to trigger liquidations by large firms can amplify price swings. He cautioned that some of the sharper moves may be tied to stress among big market makers.
Featured image from Unsplash, chart from TradingView
