Technical and Macro Pressures

As the cryptocurrency market faces a broad downturn, some industry experts suggest that Bitcoin may be approaching a bottom. According to Tom Lee, chairman of BitMine, the sell-off could be nearing exhaustion, with a potential reversal happening as soon as this week.

Lee points to a combination of factors driving the recent price decline. He cites lingering market anxiety following a significant liquidation wave on October 10, compounded by uncertainty over whether the Federal Reserve will implement rate cuts in December. Referencing insights from Demar Analytics, Lee notes that technical signals now indicate the sell-off is losing momentum.

A ‘Generational’ Buying Opportunity

Echoing this sentiment, Bitwise Chief Information Officer Matt Hougan described the current price levels as a potential “generational opportunity” for investors with a long-term perspective. He believes the downturn isn’t tied to a single issue but rather a collection of market-wide pressures.

Hougan attributes the slump to recent outflows from Exchange-Traded Funds (ETFs), selling activity from major token holders, and heightened geopolitical tensions. He also suggests that nervousness around Artificial Intelligence (AI) valuations and concerns related to potential tariff policies are contributing to the negative sentiment across risk assets.