Tom Lee: AI Stock Selloff May Have Bottomed; Crypto Market's Reaction to Binance Incident Suggests Most Selling Pressure May Be Over

November 3 – According to Decrypt, Tom Lee, co-founder of Fundstrat and chairman of Bitmine, said the AI stock selloff has reached a bottom. He believes AI market demand remains supply-constrained rather than reflecting overcapacity; although spending limits are slowing growth, this does not mean the AI boom has peaked. In a CNBC interview, Lee said: "I think we are at a bottom." He also acknowledged that it is hard to judge a bottom because it is unknown how much further downside remains.

Lee also cited the crypto market's reaction to the Binance incident as evidence. He believes that if cryptocurrency is a leading indicator of risk appetite, the market has already absorbed a large amount of selling, and there may be few sellers left. Market data shows that Bitcoin fell about 4% that day to around $76,400; U.S. spot Bitcoin ETFs saw net outflows of $643.2 million, the largest single-day outflow in October; and more than $1.3 billion in leveraged positions were forcibly liquidated. Previously, Binance estimated that the incident had an impact of about $6.3 billion and said it had frozen about $3 billion in affected assets, and that it would use its emergency reserve and corporate funds to cover the losses.