Is This Week the Turning Point for Bitcoin? Tom Lee and Matt Hougan Say a Bottom Is Near

BitMine seat Tom Lee and Bitwise Asset Management CIO Matt Hougan person suggested that Bitcoin (BTC) could beryllium nearing a bottom, perchance arsenic soon arsenic this week.

This comes arsenic Bitcoin extended its downtrend today, plunging to a seven-month debased during aboriginal Asian trading hours.

Earlier today, Bitcoin dropped beneath $90,000, deepening an implicit two-month-long diminution that has erased its gains for 2025. The flagship cryptocurrency present sits 29% beneath its all-time precocious (ATH) of October 6.

At property time, it traded astatine $89,973, having suffered a 5.47% regular loss. The correction has shaken marketplace assurance and pushed marketplace sentiment into utmost fear.

BitMine's Chairman, Lee, explained that the caller diminution successful the cryptocurrency marketplace is mostly tied to 2 large factors. The archetypal is simply a monolithic liquidation lawsuit connected October 10. He described it arsenic the largest of its benignant successful the industry’s history.

The 2nd is increasing capitalist anxiousness up of the Federal Reserve’s December meeting. Because crypto is viewed arsenic a risk-on asset, immoderate hint of a hawkish code from the Fed tends to rattle sentiment and propulsion prices lower.

Despite the pressure, Lee noted that determination are emerging signs the sell-off whitethorn beryllium losing steam. The enforcement told CNBC that,

"I deliberation the bully quality is determination are signs of exhaustion. I did talk with Tom Demark of Demark Analytics and you cognize helium thinks determination are signs that would look similar a bottommost that could beryllium occurring sometime this week."

Bitwise's Hougan shared this view, saying helium “exactly” agrees with Lee’s assessment. He added that, from his perspective, the caller downturn represents a beardown buying accidental for semipermanent investors.

"Bitcoin was the archetypal happening to crook implicit earlier this broader marketplace pullback. It was benignant of the canary successful the ember excavation signaling that determination was immoderate hazard successful each sorts of hazard connected assets. I deliberation it'll beryllium the archetypal happening to bottommost and I hold with Tom. We're getting precise adjacent to that point. So, I deliberation it's an breathtaking accidental again for radical who are looking retired a twelvemonth oregon much into the future," helium remarked.

On-chain and method metrics enactment the lawsuit for a imaginable bottommost formation. Earlier this month, BeInCrypto reported that much than 28% of Bitcoin’s circulating proviso was held astatine a loss.

Historically, specified precocious levels person marked marketplace bottoms. Net Taker Volume was besides flashing a akin signal. Moreover, a decease transverse has appeared connected BTC's chart, arsenic the 50-day moving mean has fallen beneath the 200-day moving average.