BitMine President Tom Lee stated in an interview that the weakness experienced in the cryptocurrency market in recent weeks bears striking similarities to the major crashes of the past.
Lee stated that current market movements largely parallel the historic liquidation event that occurred on October 10th, triggered by a stablecoin pricing error. That day, approximately 2 million accounts were liquidated, and market liquidity virtually froze within minutes.
According to Tom Lee, “deleverage cycles” that experience such large-scale liquidations typically last around eight weeks. Lee noted that the crypto market is currently in its sixth week of this cycle, indicating that the correction may be nearing its end.
Analysts say the price declines and increased selling pressure experienced in recent weeks are largely due to the unwinding of leveraged positions. Lee's assessment was interpreted as strengthening the likelihood of a near-term recovery despite ongoing market uncertainty.
Experts say that the reduction in leveraged transactions could ease the selling pressure on the market, paving the way for a more stable price structure in Bitcoin and other crypto assets.