Tom Lee’s bear market warning is stirring debate as his affiliated firm BitMine continues aggressively accumulating Ethereum (ETH) despite a 57% drop from its 2025 peak. The contrast between Lee’s caution and BitMine’s bullish buying has left traders questioning whether the market is facing deeper losses or a potential rebound.
On May 24, Lee stated that a bear market may arrive later this year, a comment that quickly went viral under the hashtag “Bear Market Incoming?” Yet just hours earlier, blockchain analytics platforms Onchain Lens and Lookonchain reported that BitMine bought another 60,000 ETH worth approximately $126 million through wallets linked to BitGo and Kraken. This purchase raised BitMine’s total holdings to over 5.33 million ETH—more than 4.3% of Ethereum’s circulating supply—making it the largest public Ether treasury firm.
BitMine began its Ethereum treasury strategy in July 2025 after a $250 million private placement. The firm originally targeted 5% of ETH supply by year-end, and Lee has called the sub-$2,200 prices an “attractive opportunity.” Staking rewards sweeten the deal: BitMine stakes over 4.7 million ETH, generating annualized returns near $289 million.
Despite institutional demand, technical analysts highlight a rising wedge pattern on ETH’s chart, with a possible breakdown below support that could send the price toward $1,600—a 25% decline that would deepen BitMine’s paper losses to an estimated $10.1 billion. Conversely, a successful defense could push ETH to $2,530. Market sentiment remains divided, with some viewing the correction as a healthy reset while others worry about leadership tensions at the Ethereum Foundation and the SEC’s delay on tokenized stock products.
Lee’s dual role—warning of a bear market while his own firm buys the dip—has created a split message. For now, all eyes are on Ethereum’s next major price move to determine whether the bear market call or the accumulation strategy proves correct.
