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.
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.
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.
*This is not investment advice.