According to a recent CNBC interview cited by BlockBeats, Fundstrat’s Tom Lee believes the crypto market is on the verge of a strong recovery before the year ends. Lee explained that the market faced a major deleveraging event on October 11, one of the most severe liquidation waves in the past five years, driven partly by global trade tensions and tariff concerns. This shakeout triggered widespread selling and fear across the sector, leaving traders cautious even weeks later. However, Lee emphasized that the worst appears to be over, with market fundamentals beginning to stabilize.
He pointed out that Bitcoin and Ethereum contract holdings have dropped to historic lows, often a bullish sign that signals reduced leverage and the potential for renewed upward momentum. Technical indicators for both assets are now showing positive trends, suggesting that investor confidence may soon return. Adding to the optimism, JPMorgan’s recent openness to accepting cryptocurrencies as collateral marks a significant step toward mainstream institutional adoption. Lee concluded that these developments collectively set the stage for a potential market rebound, positioning Bitcoin and major altcoins for a strong finish to the year.
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