Bessent expects U.S.-China rare earths agreement to be confirmed by Thanksgiving.
BitMine Chairman, Tom Lee, believes the latest crash in crypto is not driven by fading adoption or long-term weakness. Instead, he argues it may be the result of a major hole in the balance sheet of one or more market makers. Meanwhile, Treasury Secretary Scott Bessent expects the U.S.-China rare earths deal to be completed by Thanksgiving
Tom Lee Says Crypto Market Stress Is Temporary
According to Lee, this kind of imbalance can trigger forced liquidations, aggressive price dumping, and sharp fear in the market. He compared the situation to sharks circling weakened prey.
In a recent interview, Lee predicted a 50% drop in Bitcoin price. This is proof of the current weakness in the crypto market structure. He said opportunistic traders may be pushing Bitcoin lower to trigger even larger liquidations.
Bitcoin has struggled to recover after dipping below key support levels, while Ethereum also faced selling pressure. Despite the panic, Lee called the situation temporary. He described the current downturn as short-term pain caused by structural stress rather than a collapse in fundamentals.
Tom Lee Advises Against Leverage During Volatility
The BitMine Chairman stressed that his long-term view on Ethereum remains unchanged and said Wall Street’s push toward an ETH supercycle is still intact. His conviction is underlined by BitMine’s Ethereum purchases.
According to him, the trend of traditional finance adopting blockchain technology has not slowed and remains one of the strongest forces driving the industry. Lee also warned investors to avoid leverage during this environment. He said liquidations are hitting traders with borrowed money the hardest.
The BitMine Chairman added that now is not the time to take unnecessary risks. He previously said the recovery could begin within six to eight weeks, likely after Thanksgiving.
Bessent Targets Thanksgiving for U.S.-China Rare Earths Deal
While the crypto market deal with forced selling and balance sheet concerns, the geopolitical backdrop is shifting. During a Fox News interview, Treasury Secretary Scott Bessent said the United States and China are working to finalize a rare earths agreement by Thanksgiving.
The deal would aim to avoid tariffs and prevent export restrictions on critical minerals and magnets. These are used in defense, energy, and technology manufacturing.
Bessent said he is confident China will honor its commitments. He highlighted the positive talks between President Trump and President Xi and said both sides want stability.
He noted that the agreement would follow last month’s framework that paused new tariffs on Chinese imports. China would in return avoid restrictive licensing rules for rare earth elements.
