BitMine Chairman Tom Lee has identified five possible reasons behind the recent crypto market selloff while maintaining that Ethereum and the digital asset industry remain positioned for a longer-term supercycle.
Summary
- Tom Lee identified five possible causes of the crypto selloff, including Nvidia losses and Anthropic’s IPO.
- Lee suggested the Binance hack recovery may have prompted customers to convert returned cryptocurrencies into cash.
- US spot Ethereum ETFs recorded approximately $398.9 million in net outflows during the November 9–13 trading week.
- Onchain Lens reported that an Ethereum Foundation-linked wallet sold 7,500 ETH over four days.
- BitMine held 6.07 million ETH in its November 9 disclosure, despite substantial unrealized losses in its investment portfolio.
In a post on X, Lee pointed to falling artificial intelligence (AI) stocks, investor preparations for Anthropic’s IPO, customer withdrawals following the Binance hack, cybersecurity concerns and US scrutiny of chip exports. He argued that the selling had continued despite growing interest in blockchain technology among financial institutions.
Ethereum was trading near $1,800 on November 15, down approximately 6% over 24 hours, according to crypto.news price data. Bitcoin traded around $64,000 as losses continued across major cryptocurrencies.
Tom Lee links crypto selling to Nvidia and Anthropic IPO
Lee believes weakness in artificial intelligence and semiconductor stocks, particularly Nvidia, may have triggered margin calls among retail investors in Asia. Investors holding leveraged positions can be forced to sell assets when falling prices reduce the value of their collateral.
He suggested that another source of pressure was Anthropic’s upcoming stock market debut. Investors preparing to participate in the offering may have sold existing holdings to raise cash, including cryptocurrency.
The company’s planned November listing has attracted attention because of its expected size. Anthropic’s November 12 SEC filing documents its preparations for the offering, although the filing does not establish how much cryptocurrency investors may have sold to finance subscriptions.
Lee further suggested that a substantial retail allocation through Robinhood could encourage customers to convert crypto holdings into cash before buying Anthropic shares. His comments presented the proposed selling as a possible explanation, not a measured amount of outflows.
Binance hack recovery
Another factor Lee identified was the return of customer access to funds following Binance’s October 29 security breach, which resulted in approximately $6.3 billion in stolen cryptocurrency.
He suggested that customers whose balances had been restored might be converting their holdings into cash or stablecoins, creating additional selling pressure.
The exchange restored withdrawals in phases after suspending services during its investigation. By November 3, Binance said it had replenished approximately 98% of the affected assets using company resources.
Blockchain analytics firm Chainalysis separately traced the attack to activity associated with North Korea’s TraderTraitor group. Its investigation documented stolen funds moving across blockchains and billions of dollars in asset freezes.
However, the publicly reported recovery figures do not identify how much cryptocurrency reimbursed customers subsequently sold. The return of withdrawal access and the conversion of those holdings into cash are separate transactions.
AI security fears and chip investigations add to concerns
Lee named two further pressures connected to technology stocks. He said Anthropic’s discussions about artificial intelligence potentially compromising existing cybersecurity systems had contributed to concerns about digital businesses.
His final explanation involved US investigations and scrutiny of advanced semiconductor exports to Asia, particularly China. He argued that investors worried about further regulatory action involving technology companies and their overseas customers.
The Justice Department’s chip-export investigations have involved companies connected to Nvidia, including Megaspeed and Supermicro. Authorities have examined possible export-control violations, while separate inquiries concern Nvidia’s business practices.
The investigations establish the regulatory activity Lee referenced, although neither the proceedings nor his comments quantify any resulting cryptocurrency sales.
BitMine keeps buying Ethereum
US spot Ethereum ETFs recorded approximately $398.9 million in net withdrawals between November 9 and November 13, according to Farside Investors. Friday brought a modest $2.3 million inflow after four consecutive sessions of net withdrawals.
Meanwhile, blockchain tracker Onchain Lens reported that an Ethereum Foundation-linked wallet sold 7,500 ETH for approximately 14.52 million USDS over four days. The latest transaction involved 2,500 ETH exchanged for 4.597 million USDS through CoW Swap.
Despite the selling, BitMine has continued accumulating Ethereum. As previously reported, the company purchased another 9,587 ETH during the week preceding November 9.
Its latest company disclosure listed 6,070,092 ETH, representing approximately 4.97% of Ethereum’s circulating supply. Of that amount, 5,227,037 ETH was staked.
BitMine’s annual SEC filing recorded approximately $6.23 billion in unrealized digital asset losses for the fiscal year ended August 31. Using its August ETH acquisition-cost average against November prices near $1,800 suggests a paper shortfall approaching $10 billion, although subsequent purchases affect the precise figure.
Lee nevertheless maintained his longer-term position, writing that crypto could experience a “supercycle” larger than previous ones and that the current headwinds would pass. He reiterated his belief that Ethereum would serve as infrastructure for future financial transactions.
