What to do after the crypto market crashes? Tom Lee provides a "new buying logic" for Bitcoin and Ethereum

Fundstrat Chief Investment Officer and BitMine Immersion (BMNR) Chairman Tom Lee stated at the Hong Kong Consensus Hong Kong 2026 conference that investors should no longer obsess over precisely predicting market bottoms, but instead focus on identifying entry opportunities with favorable risk-reward profiles during pullbacks. "What you should be thinking about is opportunity, not panic selling," he emphasized.

Recently, the crypto market has come under renewed pressure. Since reaching a historic high in October 2025, Bitcoin has retraced approximately 50%, marking one of the most severe corrections since 2022. On Wednesday, Bitcoin fell below $67,000, dropping about 2.8% in the past 24 hours; Ethereum also weakened, falling to around $1,950, with a daily decline of about 3%.

Lee linked this downward move to significant volatility in precious metals prices. He pointed out that in late January, gold market capitalization experienced daily swings of several trillion dollars, triggering chain reactions of margin pressure, leading to a sell-off in risk assets. Due to Bitcoin's performance lagging behind gold in 2025, he believes precious metals may have already approached a local high, while digital assets could have better relative performance prospects before 2026.

Regarding Ethereum, Lee reviewed historical trends, noting that since 2018, Ethereum has experienced multiple deep retracements of around 50%, often followed by strong rebounds. He also cited technical analyst Tom DeMark’s assessment that Ethereum might temporarily dip below $1,800, forming a "perfect bottom" to lay the groundwork for subsequent medium-term recovery.

Lee summarized that the market will never provide a universally accepted bottom point, but staggered positioning, controlling the pace, and focusing on long-term logic are often more practical than obsessing over precise timing. For investors willing to tolerate volatility, the current stage is more about reassessing risks and potential rewards.