Tom Lee: Ethereum ‘V-shaped recovery’ soon as Bitmine buys at $2,000 price

Ethereum is heading for a “V-shaped recovery” after crashing 60% from its peak, according to Bitmine Chair Tom Lee.

A V-shaped recovery means prices will quickly rocket back to their peaks after a significant drop.

“This happened in each of the eight prior declines of 50% or more,” Lee said on Monday. “A similar recovery is expected in 2026.”

Lee’s optimistic outlook comes as the second-largest crypto hovers near $2,000 per token, after falling by 35% over the past month amid an industry drawdown that has wiped out $2 trillion in value.

“Crypto prices are highly volatile, and in fact, this is the eighth time since 2018 that Ethereum prices have fallen 50% or more from a recent high, meaning declines like this are seen annually,” he said.

Lee added: “The best investment opportunities in crypto have presented themselves after declines. Think back to 2025, the single best entry points in crypto occurred after markets fell sharply due to tariff concerns.”

He referred to the onslaught of trade taxes US President Donald Trump began to threaten the country’s trading partners with at the beginning of last year, which saw both crypto and general markets wobble.

Market sentiment around Ethereum has suffered in February as major holders have sold off their holdings.

Vitalik Buterin, the blockchain’s co-founder, dumped at least $7 million worth last week in order to fund new projects. Stani Kulechov, the founder of decentralised finance platform Aave, sold off over $8 million.

Bitmine underwater

Bitmine is now sitting on at least $6.6 billion in unrealised losses from its Ethereum purchases.

For comparison, investment banks took a $10 billion loss after the collapse of hedge fund Archegos in 2021, which sent shockwaves throughout financial markets and triggered major reforms.

Bitmine’s share price has fallen about 66% to $21 over the past six months in light of Ethereum’s poor price performance.

Yet the painful market action isn’t deterring Bitmine from doubling down on Ethereum. The firm purchased just over another $80 million worth of tokens on Monday.

“The best investment opportunities in crypto have presented themselves after declines,” Lee said.

Bitmine, which is backed by the likes of Peter Thiel’s Founders Fund and Cathie Wood’s ARK Invest, now owns 3.6% of the entire Ethereum token supply and is aiming for 5%.

Lee has long been one of the most prominent Ethereum bulls, predicting a token price of $250,000.

Crypto market movers

• Bitcoin is down 0.8% over the past 24 hours, trading at $68,972.
• Ethereum is down 1.5% past 24 hours at $2,009.

What we’re reading

• Farcaster co-founders join Stripe’s Tempo blockchain following Neynar acquisition — DL News
• Why investors are turning bullish as Bitcoin price stalls near $70,000, analysts say — DL News
• Ethereum Lets Go of the Rollup Story. Here Are the 6 Tokens That Benefit — Unchained
• Are we getting relief, or more pain? — Milk Road
• China bans most yuan stablecoins — but leaves a tiny loophole — DL News

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at [email protected].