Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee and settle in, because the latest crypto pullback may not be what it seems, at least according to BitMine chair Tom Lee. Beneath the headlines and market jitters, a far more unexpected force may be driving Ethereum’s slump, one that has little to do with the Fed, and everything to do with crypto’s own plumbing.
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Crypto News of the Day: Tom Lee Warns of ‘Crypto QT’ as Ethereum Enters a Supercycle Setup
Ethereum may be suffering from one of its sharpest drawdowns of the year, but Fundstrat’s Tom Lee argues the real culprit is not the Federal Reserve (Fed). Rather, it is a sudden liquidity shock inside crypto itself.
Speaking in a new interview, Lee said the October 10 washout unleashed the largest liquidation event in crypto history, wiping out players and potentially crippling key market-makers, creating what he calls a form of “crypto QT.”
According to the BitMine chair, the market’s weakness stems from a combination of macro fear and internal structural stress.
However, for Ethereum specifically, Lee believes the more important factor is the quiet disappearance of crucial liquidity providers following the wipeout.
This internal liquidity drought, Lee argues, is why prices have lagged. “It does take a few weeks for the industry to sort of find its footing, and I think that’s why crypto prices have lagged here.”
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Ethereum’s Supercycle Is Still Intact, Lee Says
Despite the stress, Lee remains adamant that Ethereum is in the early stages of a long-term Supercycle. Perhaps this is why BitMine continues to accumulate, as reported in a recent US Crypto News publication.
He points to surging activity across stablecoins, RWA tokenization, prediction markets, and emerging digital identity rails, most of which depend on Ethereum or its Layer 2 ecosystems.
To Lee, those data points reinforce the thesis that it is a story that is still in the earliest stages and one of the reasons why BitMine considers it a super cycle. Bitwise CIO Matt Hougan echoed that view, calling the current environment a rare entry point.
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For investors looking long-term, he added, “it really is almost a gift.”
A Bitcoin Breakout Could Reset Sentiment
One open question remains whether Bitcoin has already peaked for the cycle. Lee said the answer will shape how investors interpret the next year.
He expects broader market strength to carry into year-end, helping push Bitcoin back to all-time highs. In other words, the pain may be real, but the cycle is far from over.
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Chart of the Day
Ethereum Price Performance. Source: TradingViewByte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Crypto Equities Pre-Market Overview
| Company | At the Close of November 17 | Pre-Market Overview |
| Strategy (MSTR) | $195.42 | $194.06 (-0.70%) |
| Coinbase (COIN) | $263.95 | $261.50 (-0.93%) |
| Galaxy Digital Holdings (GLXY) | $25.04 | $24.80 (-0.96%) |
| MARA Holdings (MARA) | $11.51 | $11.42 (-0.78%) |
| Riot Platforms (RIOT) | $13.88 | $13.78 (-0.72%) |
| Core Scientific (CORZ) | $14.79 | $14.60 (-1.28%) |
Source: https://beincrypto.com/ethereum-market-downturn-liquidation-event/
