Tom Lee described two of the market’s most widely discussed bearish signals as signs typically seen near a bottom: Strategy’s first Bitcoin sale in years and an extended run of outflows from U.S. spot Bitcoin ETFs. His view is that both figures have amplified fear, but neither one changes the broader institutional positioning in crypto.
According to a June 2 report by CoinDesk, the Bitmine Immersion Technologies (NYSE: BMNR) chairman said current conditions resemble textbook “local bottom behavior.” Bitcoin had fallen below $70,000, pushing sentiment lower, yet Lee argued that the indicators causing the most panic often appear late in a market cycle.
Lee says Strategy’s 32 BTC sale was too small to matter
The immediate trigger was Strategy’s 8-K filing last week, which disclosed the sale of 32 BTC for about $2.5 million to pay preferred stock dividends. It was the company’s first reduction in nearly four years, and that was enough to revive questions about whether Michael Saylor’s stance on Bitcoin had changed.
Lee pushed back on that interpretation. He said Michael had already indicated there was flexibility in how assets would be managed, and this transaction was simply part of that plan. By his account, Strategy still holds 843,700 BTC, which means the sale represented only 0.004% of total holdings. In that framing, the move looks tactical, not a strategic reversal.
ETF outflows reached $3.4 billion over 11 trading days
Pressure on sentiment has also come from ETF flows. U.S. spot Bitcoin ETFs have now posted net outflows for 11 straight trading days, with cumulative withdrawals totaling $3.4 billion. Market makers including Wintermute have also pointed to a growing disconnect between crypto and U.S. equities, which have continued to reach new highs.
Lee treated those ETF outflows as a lagging indicator rather than a fresh warning signal. In the interview, he said this is exactly the kind of behavior expected near a bottom: investors capitulate when conditions feel the worst, and retail sellers often exit at that stage. His point was blunt. The outflows, in his view, reflect damage that has already been done more than they forecast another wave of selling of the same scale.
Bitmine added 111,942 ETH in one week
Lee also pointed to Bitmine’s own balance sheet activity to support his argument. The company bought another 111,942 ETH over the past week, a purchase valued at roughly $237 million. The buying came during a weak stretch for market sentiment and showed no change in the firm’s Ethereum accumulation strategy.
Based on the figures cited in the report, Bitmine now holds close to 5.4 million ETH, equal to about 4.47% of Ethereum’s circulating supply, and is still moving toward its 5% target. Lee said the company’s “Alchemy of 5%” plan remains on track, with short-term price swings not altering the pace of accumulation.
The message from Lee was direct: Strategy’s small Bitcoin sale, sustained ETF outflows, and rising market anxiety still look like cycle noise to him, while Bitmine’s response has been to keep increasing its ETH exposure.