Tom Lee says crypto market recovery has begun

Bitmine chairman Tom Lee has said the crypto market may be entering an early recovery phase even as investor sentiment remains cautious.

According to Bitmine Immersion Technologies chairman Tom Lee, recent market trends resemble past cycle transitions where prices begin to recover while investor sentiment remains subdued. 

In a note on Monday, Lee said “crypto spring…has commenced,” adding that sentiment has stayed cautious even as prices strengthen.

Lee tied that outlook to policy developments in the U.S., stating that the outcome of the CLARITY Act, whether it is passed or rejected, would confirm the return of favourable conditions for digital assets. His note came after more than six months of weak pricing following the October 2025 market downturn, a period that analysts have tracked closely for signs of reversal.

According to the company’s latest disclosure, Bitmine purchased over 101,745 Ether worth about $242 million in the past week, pushing total holdings beyond 5.1 million ETH. The firm said this represents roughly 4.29% of Ethereum’s circulating supply of about 120.7 million tokens.

Lee said the company is “continuing our aggressive accumulation,” pointing to a faster pace of purchases over the past four weeks.

Earlier updates from the company showed holdings around 5.07 million ETH, while on-chain data tracked by Arkham indicated that more than 4 million ETH has already been deployed into staking programmes. 

Valued at roughly $9.3 billion, the stash accounts for roughly 10.5% of the total staked Ethereum supply, according to the same data.

Company disclosures show the strategy combines continued purchases with staking, allowing Bitmine to generate yield while reducing liquid supply in the market. Internal targets cited in reports indicate the firm is working toward securing up to 5% of Ethereum’s total supply over time.

Ethereum outlook tied to institutional and AI demand

Lee said Ethereum’s positioning remains supported by institutional adoption trends, noting that “Wall Street tokenizing on the blockchain” continues to drive demand. He added that emerging AI systems are increasingly relying on neutral public blockchains, which he said strengthens Ethereum’s role in the ecosystem.

Performance data cited by Lee shows ETH has outperformed the S&P 500 by 1,380 basis points since the start of the war referenced in his note, placing it among the strongest performing assets alongside crude oil.

On-chain data and company filings indicate Bitmine remains one of the largest holders of Ether, with its growing allocation placing it among the most active institutional participants shaping supply dynamics in the Ethereum market.