Market Dynamics and Potential Causes
Commenting on the sharp declines in the cryptocurrency market in recent days, BitMine President Tom Lee said that the current weakness could be due to a “deficit” in the balance sheet of a large market maker or a few players.
According to Lee, there are “sharks trying to trigger liquidation” in the market, and this is putting downward pressure on the price of Bitcoin in particular.
Long-Term Outlook and Investor Warnings
Lee argued that this process is short-term, maintaining that Wall Street's vision of an Ethereum-centric supercycle has not changed. He noted that the current volatility is more of a technical shakeup, adding that the long-term structure remains strong.
Lee also issued a strong warning to investors against the use of leverage, stating that this environment is extremely vulnerable to “liquidation traps.” He said he expects the markets to recover in approximately 6-8 weeks.
Current Market Performance
The price of Bitcoin has fallen 9.45% in the past month and is trading at $95,959 at the time of writing, down 23% from its all-time high.