Crypto markets continued to slide on November 15, with Ethereum trading near $1,800, down about 6% over 24 hours, and Bitcoin hovering around $64,000. BitMine Chairman Tom Lee has offered five possible explanations for the selloff, while arguing that the weakness does not undermine his longer-term view that digital assets are approaching a “supercycle.”
In a post on X, Lee said crypto prices had fallen despite what he described as positive industry developments, including financial institutions’ growing use of blockchain technology. He suggested that pressure from technology stocks, investors raising cash for a potential initial public offering, Binance customers regaining access to funds, cybersecurity concerns and US scrutiny of chip exports may all have contributed. Lee presented these as possible causes; the post did not quantify how much selling each factor generated.
Lee pointed first to weakness in artificial intelligence and semiconductor stocks, particularly Nvidia. He suggested that falling share prices may have triggered margin calls for retail investors in Asia who held leveraged positions. When the value of collateral falls, investors can be required to sell assets to meet those calls, potentially adding pressure to other markets.
A second possible source of selling, Lee said, was investor preparation for Anthropic’s planned stock-market debut. The company filed with the US Securities and Exchange Commission on November 12 as it prepared for an offering. Lee speculated that some investors may have sold existing assets, including cryptocurrency, to raise cash for the listing. He also suggested that a substantial retail allocation through Robinhood could prompt customers to convert crypto holdings into cash. The filing does not establish whether, or to what extent, prospective investors sold cryptocurrency to finance subscriptions.
Lee also cited the restoration of customer access to funds after Binance’s October 29 security breach. He suggested that customers whose balances were restored might be converting cryptocurrency into cash or stablecoins, adding to market pressure.
Binance suspended services during its investigation and restored withdrawals in phases. By November 3, the exchange said it had replenished approximately 98% of affected assets using company resources. Separately, blockchain analytics firm Chainalysis traced the attack to activity associated with North Korea’s TraderTraitor group and documented stolen funds moving across blockchains, along with billions of dollars in asset freezes. Publicly reported recovery figures do not show how much cryptocurrency customers later sold. The restoration of withdrawal access and the sale of those assets are distinct transactions.
The final two factors Lee identified were technology-related concerns. He said discussions about the possibility that advanced AI could compromise existing cybersecurity systems had unsettled investors in digital businesses. He also pointed to US investigations and scrutiny of advanced semiconductor exports to Asia, particularly China, as a source of concern about further regulatory action involving technology companies and their overseas customers.
US authorities have investigated possible export-control violations involving companies connected to Nvidia, including Megaspeed and Supermicro, while separate inquiries have focused on Nvidia’s business practices. Those proceedings establish the regulatory activity Lee referenced, but neither the investigations nor his post quantify any crypto sales resulting from them.
Other indicators showed selling pressure across the Ethereum market. US spot Ethereum exchange-traded funds recorded about $398.9 million in net outflows during the November 9–13 trading week, according to Farside Investors. The funds saw four consecutive sessions of net withdrawals before recording a modest $2.3 million inflow on Friday.
Onchain Lens also reported that a wallet linked to the Ethereum Foundation sold 7,500 ETH for approximately 14.52 million USDS over four days. The latest reported transaction involved 2,500 ETH exchanged for 4.597 million USDS through CoW Swap.
BitMine, meanwhile, has continued buying Ethereum. The company purchased a further 9,587 ETH in the week before November 9, according to earlier reporting. Its latest disclosure listed holdings of 6,070,092 ETH, or approximately 4.97% of Ethereum’s circulating supply. Of that total, 5,227,037 ETH was staked.
BitMine’s annual SEC filing reported approximately $6.23 billion in unrealized digital-asset losses for the fiscal year ended August 31. A rough comparison of the company’s average acquisition cost for ETH in August with prices near $1,800 in November suggests a potential paper shortfall approaching $10 billion, though subsequent purchases affect the precise estimate.
Despite the market weakness, Lee maintained his bullish long-term outlook. He said he believes crypto could enter a “supercycle” larger than previous ones and argued that current headwinds would pass. He has also described Ethereum as infrastructure for future financial transactions.
