Despite short-term market pressure, Tom Lee remains convinced that the cryptocurrency market is far from reaching its cyclical peak. In his November letter to shareholders, he pointed out that several structural factors continue to support the market, and the cyclical peak is likely to occur in 2026 or later.
![图片[1]-BitMine bought 54,000 Ether at the bottom! Tom Lee firmly believes: the cryptocurrency market has not yet peaked.-OzABC](https://www.ozabc.com/wp-content/uploads/107326324-1698772881166-IMG_8215-1140x570-1-800x400.webp)
BitMine Immersion (stock code: BMNR), the world’s second-largest cryptocurrency reserve company, disclosed that it made a large purchase of more than 54,000 Ether last week, estimated at about $173 million at the current price, making it one of the most watched institutional buyers in the market recently.
To date, BitMine’s Ethereum holdings are approaching 3.6 million coins, representing nearly 3% of the circulating supply. BitMine also holds a small amount of Bitcoin (BTC) and a stake in Eightco Holdings, the reserve company for Worldcoin (WLD). Meanwhile, the company’s cash holdings have climbed from $398 million last week to $607 million.
Tom Lee, chairman of BitMine and co-founder of Fundstrat, pointed out that the recent weakness in cryptocurrencies is not due to fundamentals, but rather to a “sudden contraction in market liquidity.”
He believes that after the sharp drop in the cryptocurrency market on October 10th, a major market maker may have been severely impacted and forced to reduce its operations.
When a market maker’s balance sheet shows a funding gap, it will start raising funds and reducing the supply of liquidity.
Tom Lee explained that this phenomenon is equivalent to a cryptocurrency market version of “quantitative tightening (QT),” and the last time a similar situation occurred was in 2022, when it lasted for about 6 to 8 weeks.
Despite short-term market pressure, Tom Lee remains convinced that the cryptocurrency market is far from reaching its cyclical peak. In his November letter to shareholders, he pointed out that several structural factors continue to support the market, and the cyclical peak is likely to occur in 2026 or later.
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