Are Ethereum, Bitcoin, and Crypto Positioned for a Rebound?

Key Insights

• Tom Lee explained why Ethereum, Bitcoin, and crypto prices fell sharply in 10 days. Since 2018, ETH has seen a drawdown of 60%+ or worse 7 times in 8 years. This is basically every year.
• Statistically, this period is one of the best times to buy Bitcoin in years. Psychologically, this is one of the hardest.
• Are ETH, BTC, and crypto about to rebound as drawdowns near 60%, a historical reversal point?

The industry’s leadership has not overlooked the recent decline in prices of Bitcoin (BTC), Ethereum (ETH), and other crypto assets.

The last to speak about the current situation of the crypto market was Chairman of BitMine Immersion Technologies (BMNR), Tom Lee. BMNR trades on the NYSE as an ETH treasury firm.

With Tom Lee having enough experience in the market, especially Ethereum, it’s worth giving his perspective a look.

Tom Lee Casts Doubts on Recent Market Downturn

As per Tom Lee, the drawdown was a normal market cycle pattern. He said that, since 2018, ETH had dropped by 60% or more seven times, including 64% in 2025. This was basically a usual practice during the year, but the periods were not evenly distributed.

Ethereum 2-year drawdown | Source: Tom Lee/X

Tom Lee attributed the 10‑day crypto drop to rage quitting. He noted ETH fell 40% and BTC dropped 30%. He explained that outside shocks amplified the sell‑off, driving extreme volatility. Also, the structure itself might be shifting. But volatility like this occurs all the time.

Ethereum YTD drawdown | Source: Tom Lee/X

A potential trigger of this decline was a leveraged IBIT options blowup tied to Asian/JPY funding. The situation got worse after Nasdaq took away contract caps.

Market participants have very different opinions. Some individuals perceive the possibility of a protracted “crypto winter” and unresolved issues. Others pointed to improving fundamentals like ETH usage.

History showed that the best entries often come after big drops. For instance, in 2025, when ETH dropped to around $1,200, a rally to above $4,500 followed.

The direction of the market was still unclear; it could either be a temporary liquidation or a deeper correction. This is because there was still wiggle room to hit the 60%+ drawdown.

Taker Buy Volume Spike: Rebound Signal or False Dawn?

On that note, the market saw a big jump in Ethereum buy volume from takers that surpassed $272 million. This measure showed aggressive buy orders. The activity has often come before short squeezes or reversals.

But the results are different. Similar spikes have started rallies when demand stayed high. Others quickly lost value, which led to bigger sell-offs.

Ethereum taker buy volume data | Source: CryptoQuant

Bulls saw the trend as real spot accumulation gaining speed. Conversely, bears saw it as a temporary engineered pressure that could go down. At the time, the market was structurally bearish.

So, a rebound is possible, but it’s not certain. There was a chance for growth, but the risks of loss were just as strong. That brings us to why now could be the opportune time to go long.

Crypto Market at a Crossroads: Risk or Opportunity?

Data showed that now was one of the best times to get in on Bitcoin, Ethereum, and crypto. This is because the MVRV Z-Score in the negative zone signals reversal points. But the fear and uncertainty make it very hard on a psychological level.

That’s the main problem for investors. The comments back up this perspective. Many people agree that these kinds of dips often come before big gains.

One user even says that by summer, it should be easy to double to $120,000. But some people say that every dip feels like the end.

Crypto market Z-Score data | Source: Onchain Mind/X

In the past, buying during these times has always been a good idea. Still, there were risks. The market could go down even more.

On the other hand, beneficial catalysts could cause a quick change in direction. So, the situation calls for careful thought about all options. In the end, it’s still impossible to time the market perfectly.

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