Tom Lee said that factors including tech stock sell-offs, liquidity squeeze from Anthropic's IPO, and some holders cashing out following Binance's $6.3 billion hack have led to a sustained sell-off in the crypto market.

Tom Lee, chairman of Bitmine (an Ethereum treasury firm), stated in a post that despite multiple banks announcing adoption of crypto assets and blockchain technology, the crypto market has faced sustained sell-offs over the past weeks. He believes that sell-offs in AI and semiconductor stocks may have triggered margin calls, particularly impacting Asian retail investors; the upcoming Anthropic IPO may also have prompted some investors to sell stocks in advance to raise funds. If Robinhood users receive large allocations, some retail investors may also sell crypto assets to participate in the subscription. Tom Lee also cited the recent $6.3 billion crypto asset heist as one of the potential factors. He notes that once funds in the relevant accounts are restored to availability, some holders may convert their assets into cash or stablecoins. Additionally, discussions during Anthropic’s roadshow about AI potentially weakening existing cybersecurity defenses, and the U.S. Department of Justice’s probe into chips sold to Asia (including China), may have amplified market risk aversion. He argues that these pressures will eventually subside. In the long term, crypto networks can function as transaction settlement layers, and digital assets will transform capital markets, potentially driving a crypto "super cycle" larger than previous ones. He remains optimistic about Ethereum’s role in the financial system.