Tom Lee: The cryptocurrency market has entered the 6th week of deleveraging, is the adjustment nearing its end?
Tom Lee, co-founder of Fundstrat, mentioned in an interview with CNBC:
The current weak trend in the cryptocurrency market is actually very similar to the crash on October 10—
At that time, an anomaly in stablecoin pricing triggered the largest liquidation in history, with nearly 2 million accounts being washed out and liquidity being instantly drained.
Lee pointed out that whenever the market experiences this kind of 'forced deleveraging' scenario, it usually goes through a recovery period of about 8 weeks.
Now we have already reached the 6th week.
In other words:
The adjustment is highly likely nearing its end, and the market may be brewing the next reversal.
The cryptocurrency market often does not rise on news but rises during the phase when 'no one dares to get on board.'
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