Tom Lee Says Crypto Could Bounce Back After Recent Sell-Off

Highlights:

• Tom Lee says the recent crypto and tech sell-off could offer investors a good buying opportunity.
• Fundstrat strategist Mark Newton expects markets could bottom by October 19, ahead of a possible recovery.
• Lee believes crypto, semiconductor stocks, and AI cloud companies could rebound if their fundamentals remain strong.

Fundstrat’s Tom Lee believes the latest market sell-off could offer investors a buying opportunity, including in cryptocurrencies. He said crypto assets, semiconductor stocks, and AI cloud companies have fallen toward key support levels. However, he expects a recovery if the underlying business outlook remains strong.

In an October 16 CNBC interview, Lee said investors had grown increasingly nervous about artificial intelligence, rising oil prices, and the possibility of further geopolitical tensions. He argued that falling prices do not necessarily mean the market is entering a prolonged downturn.

🚨Tom Lee says crypto, chip stocks and AI cloud companies are “a coiled spring” if the fundamentals hold.

The Fundstrat co-founder says they have all “pulled back to support levels,” and his strategist Mark Newton thinks markets could bottom “today or on Monday.”

Lee says when… pic.twitter.com/sQIX1hGRjv

— Coin Bureau (@coinbureau) October 17, 2026

Tom Lee Says Crypto and Tech Are Near Support Levels

Lee pointed to technical support levels, where buyers have previously stepped in to slow a decline. He said Fundstrat technical strategist Mark Newton believed the market could find a bottom on Friday, October 16, or Monday, October 19. The Fundstrat analyst also said the weakness had created opportunities in memory-chip companies, semiconductor stocks, newer AI cloud providers, and cryptocurrencies.

“I think that they’ve all pulled back to support levels,” Lee said during the interview. He added that if the fundamentals remain intact, these markets could behave like “a coiled spring.” Lee believes the recent drop has been driven partly by growing fear rather than a clear collapse in demand. 

According to him, the main drivers behind AI investment are still in place, even as investors question the cost of financing that growth. “When you have the fundamentals holding in and markets getting fearful, it’s actually a pretty good risk reward setup for investors,” he added. 

AI Debt Concerns Add Pressure to Financial Markets

The interview came as technology stocks faced another difficult session. On October 16, the Nasdaq Composite fell 2.1%, while the S&P 500 lost 1.1%, according to the Associated Press. Concerns about AI spending and the debt used to finance new data centers contributed to the decline.

During the CNBC discussion, Ned Davis Research’s Dan Greenhouse took a more cautious view of companies that rely heavily on borrowing. He said higher interest rates could make it harder for some businesses to keep funding expansion plans.

However, Greenhouse also pointed to continued demand in the wider semiconductor industry. He cautioned against treating problems at a few higher-risk companies as proof that the entire technology market was weakening. For cryptocurrencies, the immediate question is whether investors regain confidence as broader markets stabilize. Lee’s view depends on support levels holding and underlying demand remaining strong.

Tom Lee’s BitMine Buys Another 12,532 Ethereum

Lee’s confidence in crypto also comes as BitMine Immersion Technologies, where he serves as chairman, continues accumulating Ethereum. In its latest announced weekly purchase on October 12, BitMine said it bought another 12,532 ETH. The acquisition raised its holdings to 6,028,946 ETH as of October 11, representing about 4.9% of Ethereum’s reported supply.

BitMine valued its ETH holdings at roughly $15.3 billion using a price of $2,544 per token. The company aims to hold 5% of Ethereum’s supply and said it has bought ETH every week since it began its treasury strategy in June 2025.