Tom Lee’s bear market warning sparks debate as BitMine keeps buying ETH despite a 57% drop and rising paper losses.

Tom Lee’s bear market warning fuels debate as BitMine keeps buying Ether despite ETH trading 57% below its 2025 peak.

The firm’s growing Ethereum treasury raises fresh questions about risk, timing, and long-term conviction while traders watch for deeper losses or a possible rebound in the crypto market this year.

Tom Lee Warning Draws Fresh Market Attention

Tom Lee has warned that a bear market may arrive later this year. His view has gained attention because BitMine remains a major ETH buyer.

The firm has not stepped away from its Ethereum plan. However, the warning has created mixed views among traders.

Some see it as a sign of caution. Others question why BitMine keeps buying during a deep price drop.

JJUST IN: Tom Lee says a bear market is coming later this year.

Do you think he’s right and we are getting a bear market later this year ? pic.twitter.com/CUaYvYdpKo

— Crypto Tony (@CryptoTony__) May 24, 2026

“Bear Market Incoming?” has become the main question across crypto discussions. Lee’s comments have added pressure to an already weak market.

Ether’s lower price has made the debate more direct. BitMine started its Ethereum treasury plan in July 2025.

The move followed a $250 million private placement. Soon after, the firm disclosed 163,142 ETH worth about $500 million.

BitMine Keeps Buying ETH During The Selloff

BitMine recently bought another 60,000 ETH, worth about $126 million. The purchase came as Ether traded near $2,000. Blockchain analyst EmberCN said the transaction used BitGo and Kraken.

It seems that Tom Lee(@fundstrat)’s #Bitmine just bought another 60,000 $ETH($125.9M).

2 newly created wallets likely linked to #Bitmine just received 60,000 $ETH($125.9M) from #Kraken and #BitGo.https://t.co/ERjkigDF1Uhttps://t.co/I4szPTrqFn pic.twitter.com/qYZBWRSJpA

— Lookonchain (@lookonchain) May 22, 2026

The latest purchase lifted BitMine’s reported holdings above 5.2 million ETH. That position equals about 4.37% of Ethereum’s total supply.

It also makes BitMine the largest public Ether treasury firm. Lee has defended the buying strategy during the decline.

He said Ether’s fall below $2,200 created an “attractive opportunity.” He also pointed to possible support from crypto rules, including the CLARITY Act.

Still, BitMine said in May that it would slow its buying pace. The firm did not say it would end the plan. It still aims to own 5% of Ethereum’s supply by December.

Read Also:

Tom Lee-Linked Bitmine Quietly Accumulates $233M in ETH

ETH Price Setup Raises Risk Questions

Ether’s chart now shows a rising wedge pattern. Traders often watch this setup during weak recoveries. A break below support could add more selling pressure.

Some technical views point to a possible move toward $1,600. That would mark a drop of about 25% from recent levels. Such a move could deepen BitMine’s paper losses.

Based on reported holdings, losses could approach $10.1 billion. That estimate uses 5.28 million ETH and an average cost of $3,513. The number would change with market prices.

A rebound could change the short-term picture. ETH may move toward $2,530 if buyers defend support.

That level sits near the wedge top and the 200-day moving average. For now, Lee’s warning and BitMine’s buying create a split message.

The firm sees long-term value, yet the market still shows weakness. The next ETH move may decide how traders judge the bear market call.