Tom Lee

Well, you know, Bitcoin has been in a drawdown really since October 10th.

And we know that on October 10th, there was a price shock.

Then that led to one of the largest ever deleveraging events.

And so the industry has been crippled since because balance sheets have shrunk.

About a third of the industry's market makers went away.

And crypto sentiment, of course, has turned really negative because about at least two million accounts got wiped out during that mini crash.

And so the industry has been limping along.

And I think then a few things happened earlier this year that sort of triggered another cascade of not necessarily deleveraging shock, but essentially what looks like capitulation.

The first is that President Trump made a tweet about Greenland in January, and that triggered another cascade of liquidations because you had another price shock that happened over a weekend.

And as we know, liquid markets will sell what they can over a weekend ahead of a broader market opening, and that was crypto.

The second is that as markets became very leery about geopolitical tension and then, of course, dollar weakness, but then it got magnified that we had a potentially new Fed chair coming in that looked that he could be quite hawkish.

I think that led to a real rethink about how people want to be positioned.

And as you know, gold suddenly surged.

And that gold surge...

became quite expensive for investors because gold has about a $30 trillion network value now.

Gold surged almost 20% in two days.

That was a $6 trillion swing.

Well, the entire crypto market is about $2 trillion.

So gold made a very large volatile move over a weekend, which again could have triggered another set of margin calls for anyone short, especially gold and silver.

And then crypto, of course, was really the source of funds.