Tom Lee – Chairman of BitMine and one of the prominent market analysts on Wall Street – commented that the sharp correction of the cryptocurrency market will likely last only about two more weeks before hitting Dip and entering the recovery phase. This statement was made in an interview with CNBC on November 21, when the market was under strong selling pressure and investor sentiment became more cautious than ever.
According to Tom Lee, the current price action bears a striking resemblance to the October 10 shock, when a pricing error involving stablecoins led to the largest liquidation in history. In a short period of time, nearly 2 million accounts were “blown away”, money flow disappeared from exchanges, and liquidation across the market almost froze. Lee believes that this crash triggered a strong deleveraging cycle and eliminated a large amount of risky positions.
He explained that such deleveraging cycles typically last about eight weeks. As of now, the market is in its sixth week, meaning the correction may be nearing its end. While selling pressure remains, the pace of decline has slowed and price action has become more stable, suggesting the market is finding a technical Dip .
