Crypto's recent market weakness may stem partly from forces outside the cryptocurrency sector, according to Tom Lee, chairman of BitMine Immersion Technologies.
Lee points to three liquidity events as sources of selling pressure on digital assets: margin calls tied to falling AI and semiconductor stocks, investors raising cash ahead of Anthropic's scheduled November 19, 2026 IPO, and approximately $6.3 billion in funds reportedly being restored following a Binance hack in late October 2026.
How Each Factor Affects the Market
As AI and semiconductor stocks have declined, leveraged investors have faced margin calls demanding additional cash or collateral. When this happens, investors often sell crypto because it trades 24/7 and settles quickly, making it an accessible source of liquidity to cover losses elsewhere.
Anthropic's upcoming IPO may prompt investors to free up cash in anticipation of retail allocations, Lee suggests. The returned Binance hack funds represent another variable that could add selling pressure as those assets potentially flow back into the market.
Lee characterizes the combined effect as a short-term liquidity squeeze affecting retail investors most heavily in the US, South Korea, and Taiwan.
BitMine's Strategy During Volatility
Despite the market pressure, BitMine has continued accumulating Ethereum, building its treasury to approximately 6.06 to 6.07 million ETH, representing about 4.9 to 4.97% of total ETH supply. This accumulation strategy, which began in mid-2025 and has been funded primarily through equity issuance supplemented by staking rewards, has brought the company near its self-imposed 5% supply cap. BitMine is now pivoting toward share buybacks as it approaches this ceiling.
Long-Term Outlook
Lee remains bullish on Ethereum despite near-term headwinds, describing the current market setup as a "coiled spring"—a compressed market with potential to move higher if fundamentals hold. He ties his optimism to what he calls a supercycle driven by tokenization and AI, with tokenization referring to placing real-world assets like stocks and bonds onto blockchains for digital trading and settlement.
Lee also notes that crypto assets have shown resilience compared to AI stocks during recent turbulence. Some liquidity pressures have visible timelines; Anthropic's IPO is scheduled for November 19, 2026, and the movement of returned Binance hack funds could ease or persist depending on how quickly those assets move through the market.
