Tom Lee: 90% of the Market Decline May Be Over

According to analyst Tom Lee, financial markets may be nearing the end of the latest wave of declines. In an interview with CNBC, he noted that the first signs of a potential market bottom are beginning to appear. This applies to cryptocurrencies as well as parts of the technology sector.

Lee, who leads BitMine, a company managing Ethereum reserves, and is also a co-founder of Fundstrat, emphasized that markets are performing better than many expected under the current circumstances. Despite geopolitical tensions and ongoing macroeconomic uncertainty, investors are not reacting as sharply as they have in previous periods of instability.

The analyst pointed out that no one would want to see an escalation of conflicts involving the United States. However, even as negative news continues to emerge, markets remain relatively stable. In his view, this is one of the signals that investors are gradually absorbing bad news and that the market may be approaching a turning point.

Another potential sign of a bottom is the resilience of riskier assets. Lee notes that despite concerning headlines, some markets have maintained stability. He also highlights situations where gold declines while stock markets rise. According to him, this could indicate that the market is gradually clearing out excess pessimism.

Lee believes that March may be the period when markets begin forming a bottom. He estimates that around 90% of the declines in the technology sector — particularly among the largest companies often referred to as the “Mag7” — as well as in the cryptocurrency market, may already be behind us. If these assets start leading the market higher again, it could serve as a positive signal for the broader market.