Bitcoin Under Pressure as Tom Lee Sees AI Sell-Off Nearing a Bottom

| panewslab.com
Fundstrat co-founder and Bitmine chairman Tom Lee says the AI stock sell-off may be nearing a bottom, but cautions that markets could fall further. He argues that demand for AI infrastructure remains strong while supply is constrained; spending limits may slow growth without ending the AI boom. Intel’s latest results underline that tension: data centre and AI revenue rose 78% year over year to $7.3 billion, but manufacturing constraints limited supply, and a weaker revenue forecast sent its shares down nearly 30% on Friday. Lee also said Bitcoin’s relatively limited reaction to the Binance incident may suggest some selling pressure has already been absorbed. However, Bitcoin fell about 4% to around $76,400, US spot Bitcoin ETFs saw $643.2 million in net outflows—their largest daily outflow in October—and more than $1.3 billion in leveraged positions were liquidated. Binance estimated the incident’s impact at about $6.3 billion, said it had frozen roughly $3 billion in affected assets, and pledged to cover losses with emergency reserves and company funds. The indicators point to significant short-term stress, and do not confirm that Bitcoin selling has ended.
Bearish
The direct price impact is bearish for Bitcoin, particularly in the short term. Bitcoin’s roughly 4% decline, $643.2 million in spot ETF outflows and more than $1.3 billion in leveraged liquidations point to active selling, reduced risk appetite and the potential for further volatility. The Binance incident also adds uncertainty, even though the exchange says it froze affected assets and will cover losses. Lee’s view that selling may have been absorbed offers a counterpoint, but relatively limited reaction to a security incident does not establish a price floor. Historically, heavy liquidations can intensify near-term downside as leveraged positions unwind, while ETF outflows can signal weaker institutional demand. Over the longer term, any stabilization in flows and a sustained recovery in demand could ease pressure; the current information alone does not confirm that shift. The AI supply outlook is relevant to broader risk sentiment but does not directly establish a bullish catalyst for Bitcoin.