Fundstrat's tom lee admits crypto, specifically eth, has performed 'much worse' than expected, leading to significant losses for prominent bulls. he attributes this to a post-oct 10 crash lack of market leverage and a 'warsh effect' from a new fed pick, creating market uncertainty and liquidation pressure.
Tom lee is a well-known financial analyst from fundstrat, whose views often carry weight in financial markets. his direct admission and analysis of market conditions provide a credible perspective.
While the market has experienced significant underperformance and liquidation pressures due to a lack of leverage and the 'warsh effect,' lee also states that crypto's fundamentals have remained robust and the broader economy is in good shape. this creates a mixed outlook, with ongoing pressure but underlying strength.
The analysis focuses on sustained market underperformance and long-term factors like a persistent lack of leverage and the implications of a new fed pick (warsh effect) on market sentiment and policy, suggesting a prolonged period of impact.
Cover image via U.Today Read U.TODAY on Google News During a recent appearance on CNBC, Fundstrat’s Tom Lee has admitted that the crypto market has performed “much worse” than he initially expected. Advertisement Here are the top 3 #Ethereum bulls — all hit with massive losses. pic.twitter.com/0dUI3n2bPv — Lookonchain (@lookonchain) February 2, 2026 This comes after Lee’s portfolio lost more than $7 billion. HOT Stories Morning Crypto Report: Binance Suddenly Unlocks One Trillion Shiba Inu (SHIB), Bitcoin Whitepaper Name Admits and Denies Epstein Links, $2.36 Billion Satoshi-Era Bitcoin Whale Gets in Trouble With Ethereum Crypto Market Review: XRP in Deep $1 Waters, Shiba Inu (SHIB) — Worst Price Nosedive of 2026, Is Bitcoin (BTC) in Danger of Hitting $50,000? Strategy's Saylor Hints at Fresh Bitcoin Buy Amid Investor Ridicule Shiba Inu Buyers Step In, Peter Brandt Reveals Bitcoin Price Rebound Target, Ripple Exec Confirms XRP as Priority — Top Weekly Crypto News When asked to explain the underperformance of the cryptocurrency sector, Lee states that the industry does not actually have any leverage as of now. This leverage was flushed out during the infamous Oct. 10 crash. Advertisement That was like a vortex sucking all the risk appetite toward the precious metals trade. card According to Lee, crypto has suffered from this on a price basis. At the same time, the industry's fundamentals have remained robust. “It’s been a contrast,” he summed up. Advertisement Lee also thinks that the broader economy is actually in a good shape. The new Fed pick Notably, Lee has also suggested that this uncertainty could be attributed to the new Fed pick. the market violently interpreted the pick as the return of a "hard money" regime, triggering a massive liquidation event dubbed by some analysts as the "Warsh Effect." #Bitcoin News #Tom Lee