Tom Lee's Crypto Strategy: Buy the Dip, Not the Bottom
Thomas Lee, Chief Investment Officer of Fundstrat and Chairman of BitMine Immersion (BMNR), delivered a compelling keynote at Consensus Hong Kong 2026, urging investors to shift their focus from timing market lows to seizing opportunities during what he calls a "mini winter" in crypto.
"You should be thinking about opportunities here instead of selling," Lee emphasized, highlighting that investors should stop trying to perfectly time the bottom and instead start buying the dip.
Current Market Conditions
Bitcoin has experienced a 50% drawdown from its October record highs, marking its worst correction since 2022. On Wednesday, BTC fell back below $67,000, giving up some gains from last week's crash lows. After a rapid reversal above $72,000 from $60,000 over the weekend, BTC was down 2.8% over the past 24 hours.
Ethereum's ETH slipped to $1,950, also around 3% lower, continuing its recent weakness.
The 'Perfected Bottom' Theory
Lee attributed recent crypto price weakness to volatility in metals markets, which rippled across asset classes. In late January, gold's market capitalization fluctuated by trillions of dollars in a single day, triggering margin calls and weighing on risk assets.
After bitcoin severely underperformed gold in 2025, Lee argued that the yellow metal has likely topped for this year and bitcoin is poised to outperform through 2026.
On Ethereum, Lee noted that repeated 50% drawdowns since 2018 have often been followed by sharp rebounds. Citing market technician Tom DeMark, he suggested ETH may need to briefly dip below $1,800 to form a "perfected bottom" before a more sustained recovery.
A Word of Caution
Crypto bulls should consider Lee's recent track record on forecasts. In August 2025, he predicted bitcoin would hit $200,000 by year-end, but BTC ultimately peaked at $126,000 in October before retreating to $88,500 by December 31.
He subsequently said bitcoin could reach another all-time high in January 2026, but by January 31, BTC had fallen to $78,500.
UPDATE (Feb. 11, 11:50 UTC): Added final paragraph on Tom Lee's recent price predictions.
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