TechFlow reported that on February 1, Tom Lee stated during his appearance on the podcast “The Compound” this Friday that the current bear market was triggered by the largest deleveraging event in cryptocurrency history, which occurred in October last year—a larger event than the FTX collapse. A pricing flaw at a trading platform triggered a cascade of automated liquidations, resulting in over 2 million accounts being liquidated globally, one-third of market makers being wiped out, and severe damage to trading platforms’ balance sheets—causing the entire ecosystem to “limp.”
Additionally, he maintains a bullish stance, forecasting that market performance in 2026 will resemble that of 2025: strong growth in the first half of the year, followed by a potential correction of approximately 20% around mid-year, and then a rebound of at least 10%.
