Haciyev Reşit 
Recent volatility in the cryptocurrency market has drawn significant attention from investors, and Tom Lee has offered a noteworthy assessment. Speaking in an interview with CNBC, Lee stated that a large portion of the recent decline in Bitcoin and altcoins may already be over. According to the analyst, despite rising geopolitical risks, global economic uncertainty, and continued market volatility, crypto assets have shown stronger resilience than expected. Lee noted that it is still difficult to say with certainty that the market has reached its absolute bottom, but current data suggests a pattern similar to a bottom formation process. In particular, the fact that risk assets have not experienced sharp declines despite negative news flow—and that markets have been able to absorb these developments—indicates that investor confidence may gradually be rebuilding.
Markets Performed Stronger Than Expected
Tom Lee emphasized that risk assets have demonstrated stronger performance than expected despite increasing geopolitical tensions and economic uncertainty in global markets. One of the major concerns among investors recently has been the possibility of geopolitical conflicts involving the United States. However, according to Lee, the absence of a major market-wide sell-off and the ability of markets to stabilize at certain levels are noteworthy developments.
Lee commented on the situation by saying:
“No one wants to see the U.S. enter a conflict. But it’s also important to note that the market has performed much stronger than expected.”
According to Lee, this performance suggests that markets are showing greater resilience to negative developments. While he emphasized that it is still too early to confirm a definitive market bottom, current market behavior shows signals that are often seen during bottom formation periods.
The Market Is Absorbing Negative News
Another key factor highlighted by Tom Lee is the market’s ability to withstand negative news flow. He explained that the fact crypto and stock markets have not collapsed despite unfavorable developments is an important signal. According to Lee, markets often price in bad news early, and selling pressure gradually weakens over time. During bottom formation periods, similar market patterns are often observed.
Key indicators include:
- Markets avoiding sharp declines despite negative news
- Risk assets remaining stronger than expected
- Investors restructuring their positions
- Panic indicators gradually declining
These developments suggest that markets may already be absorbing a large portion of the selling pressure, potentially indicating that the bottom formation process is underway.
The VIX Index as an Important Market Indicator
Lee also noted that investors closely monitor the VIX, often referred to as the “fear index.” The VIX measures investor expectations of volatility and is widely used as an indicator of uncertainty and risk perception in financial markets. Historically, periods when the VIX reaches very high levels have often coincided with market bottoms. However, Lee believes that extremely high levels may be less likely in the current cycle. Even so, movements in the VIX can still provide valuable signals about investor sentiment and potential market turning points.
The Decline in Bitcoin and Altcoins May Be 90% Complete
According to Tom Lee, another signal that the market may be nearing its bottom is the behavior of major technology stocks and crypto assets. He noted that the majority of the correction in software companies, large technology stocks known as the “Mag7”, and cryptocurrencies may already have taken place.
According to Lee:
- Approximately 90% of the decline in cryptocurrencies may already be complete
- Major technology stocks are showing signs of recovery
- Risk assets are beginning to regain market leadership
Lee also added that March could potentially be a period where markets finalize their bottom formation process. Overall, Tom Lee’s analysis suggests that the crypto market may be approaching a bottom. Despite ongoing geopolitical risks and macroeconomic uncertainty, the market’s ability to absorb negative developments may indicate that selling pressure has largely been exhausted.