Wall Street fortune teller Tom Lee: MicroStrategy selling coins indicates Bitcoin has bottomed out, market structure is fine

Wall Street fortune-teller Tom Lee points out that the outflow of funds from MicroStrategy's coin sales and ETFs signals a bottoming out. He emphasizes that the market structure remains intact and is optimistic that AI and tokenization will boost Ethereum, while some miners are resisting declines due to AI transformation.

MicroStrategy's coin sales market anxiety, Tom Lee sees as a bottoming signal

Known as the "Wall Street fortune-teller," Tom Lee, chairman of Bitmine, comments on recent Bitcoin market anxiety, including MicroStrategy (Strategy, stock ticker: MSTR) selling a small amount of Bitcoin, which is a typical bottoming behavior.

He emphasizes that this reflects the market is at a cyclical bottom, indicating that the overall market structure has not experienced a deep underlying crisis.

MicroStrategy's slight reduction in holdings does not hinder the big picture; capital outflows are part of normal cycles?

Recently, MicroStrategy announced the sale of 32 Bitcoins at an average price of $77,135, generating about $2.5 million to pay preferred stock dividends.

Tom Lee believes this is just the CEO Michael Saylor executing an existing plan, and the company still holds 99.99% of its Bitcoin assets.

This is MicroStrategy's second Bitcoin sale in history, four years after the first. In 2022, MicroStrategy sold 704 Bitcoins at $16,500 each to address tax issues, then bought back 810 Bitcoins two days later.

Although not the first time selling coins, MicroStrategy's actions still raise doubts about institutional supporters changing stance. Meanwhile, since the week of May 15, the US Bitcoin spot ETF market has seen about $5 billion in outflows.

Image source: SoSoValue US Bitcoin spot ETF market has seen about $5 billion in outflows since the week of May 15.

Tom Lee explains that the recent capital outflow trend is a classic lagging indicator of market cycle reset, where investors tend to sell at the bottom. Despite short-term downward price pressure, Bitmine's overall economic strategy remains unchanged, including continued positioning in other major blockchain Layer 1 assets.

Tom Lee predicts Ethereum could reach $250k

According to CoinDesk, Tom Lee recently predicted at a conference in Paris that Ethereum ($ETH) could eventually reach $250k, though he did not specify a timeline.

He believes that AI and tokenization are driving significant structural changes in financial infrastructure. Corporate staking and AI applications are bringing enormous growth, enough to offset temporary market panic.

He asserts that the current bearish crypto market is equivalent to selling at the bottom, reaffirming that the current pessimism marks the market bottom for Bitcoin and Ethereum.

• **Related report: Unfazed by decline! Wall Street fortune-teller: Ethereum could reach $250k, don’t be bearish at the bottom of BTC and ETH

Cryptocurrency stocks plunge, some miners resist declines

Meanwhile, crypto-related companies on the US stock market generally declined in the latest trading session.

Including MicroStrategy stock down 7.01%, closing at $126.54; Bitmine also down 5.95%, closing at $16.90; exchanges and service providers also suffered, Coinbase down 6.19%, closing at $163.22; Gemini down 8.89%, closing at $4.51; stablecoin issuer Circle fell 10.63%, closing at $90.13.

However, some Bitcoin miners performed relatively resilient or even surged against the trend. Mining giant MARA only fell 2.24%, closing at $13.96; Riot, on the other hand, rose 1.21%, closing at $27.65, outperforming others.

Crypto miners have already shifted, but other crypto companies are struggling

The relatively strong performance of crypto miners is related to their active transformation into AI computing.

Taking MARA as an example, the company sold $1.5 billion worth of Bitcoin in Q1 and announced it will cease large-scale ASIC miner purchases, instead betting its energy strategy on AI and high-performance computing, with up to 90% of its self-operated mining capacity potentially repurposed for AI infrastructure.

• **Related report: Once steadfast in Bitcoin! Miner MARA sells $1.5 billion, heading towards AI and high-performance computing

Amid market turbulence, miners with power resource advantages are diversifying into AI trends to support their stock prices; however, crypto-based related companies still face resource contention, industry narrative fatigue, and deadlocked US crypto legislation.