In a recent appearance on CNBC, Fundstrat’s Tom Lee admitted that the performance of the crypto market was “much worse” than originally expected.
Here are the top 3 #Ethereum bull stocks – all of which have suffered huge losses. pic.twitter.com/0dUI3n2bPv
— Lookonchain (@lookonchain) February 2, 2026
This comes after Lee’s portfolio lost more than $7 billion.
When asked to explain the poor performance of the crypto sector, Lee said that there is no real influence in the industry at the moment. This leverage disappeared with the infamous October 10 crash.
It was like a vortex sucking in all the risk appetite for precious metals trading.
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According to Lee, cryptocurrencies are affected by this on a price basis. At the same time, industry fundamentals remain strong. “It was a contrast,” he summed up.
Lee also believes the economy as a whole is actually in good shape.
The Fed’s New Choice
Notably, Lee also suggested that this uncertainty could be due to the Fed’s new election.
The market violently interpreted this choice as a return to the “hard money” regime, triggering a massive liquidation event that some analysts have dubbed the “Warsh effect.”
