Prominent market analyst and BitMine Immersion Technologies chairman Tom Lee has outlined several potential triggers behind a broad cryptocurrency selloff that erased billions in market value. In a post on X, he pointed to the decline in AI and semiconductor stocks, especially Nvidia, as a possible source of margin calls among leveraged retail investors in Asian markets. As collateral values fell, those traders may have sold other assets, including crypto, to raise liquidity.
Lee also suggested that investor preparations for Anthropic's upcoming IPO may have prompted selling. The company's November 12 SEC filing documents its expected listing, and Lee noted that a significant retail allocation through Robinhood could encourage customers to convert crypto holdings into cash before purchasing shares.
Another factor was the aftermath of Binance's October 29 security breach, in which roughly $6.3 billion in crypto was stolen. Binance said by November 3 it had replenished about 98% of affected assets using company resources. Blockchain analytics firm Chainalysis traced the attack to activity associated with North Korea’s TraderTraitor group. Lee said some customers whose balances were restored may now be converting reimbursed funds into cash or stablecoins, adding to sell pressure. He also cited concerns that AI could compromise existing cybersecurity systems and increased U.S. scrutiny of advanced semiconductor exports to Asia, particularly China, as additional pressures.
The market impact has been severe. On November 13, Bitcoin fell below $70,000, then dropped under $66,000 on Saturday and approached $62,112 by Sunday, its lowest since July. Ethereum fell to around $1,711, its weakest since early July, and was trading near $1,800 on November 15. XRP and Solana suffered large losses as well. According to CoinGlass, around $2 billion in leveraged positions were liquidated in 24 hours, mostly bullish bets. U.S. spot Bitcoin ETFs recorded nearly $3 billion in net outflows from October 30 to November 13, while spot Ethereum ETFs posted about $398.9 million in net withdrawals between November 9 and November 13, before a small $2.3 million inflow on Friday.
Onchain data showed an Ethereum Foundation-linked wallet sold 7,500 ETH for approximately 14.52 million USDS over four days, including a 2,500 ETH transaction for 4.597 million USDS through CoW Swap. Despite the selling, BitMine continued accumulating Ethereum, purchasing another 9,587 ETH in the week before November 9. Its disclosure listed 6,070,092 ETH, about 4.97% of Ethereum’s circulating supply, with 5,227,037 ETH staked. Lee maintained that the supercycle is not over and that current headwinds will pass.
