Tom Lee Sparks Market Debate with “Buy the Dip” Call Amid Massive ETF Inflows

• Tom Lee urges investors to “buy the dip” amid ETF surge.
• BitMine Immersion faces valuation pressure as Ethereum price drops 14%.
• Market shows caution as crypto firms trade near asset parity.

According to popular crypto analyst Tom Lee, investors should “buy the dip,” a phrase he emphasized using its well-known acronym “BTFD” in a post on X. His message followed Bloomberg’s Eric Balchunas report showing record inflows into U.S. equity ETFs, with more than $47 billion moving into top funds in one week, or about $10 billion per trading day.

Lee’s statement aligns with his long-standing view that short-term market declines offer buying opportunities. Meanwhile, his firm, BitMine Immersion, is experiencing one of those market dips. The company, which manages $11.36 billion in digital assets, holds 3,395,422 ETH and 192 BTC, giving it one of the largest public Ethereum treasuries in the market.

Also Read: Market Shock: Bitcoin Slides Below Trendline, Eyes on $98,000 Breakdown

Market Reactions and Valuation Tension

Ethereum’s price fell by more than 14% this week to around $3,334, bringing BitMine’s market value close to the worth of its underlying holdings. Data from Blockworks Research showed the company trading at 1.04 mNAV on outstanding shares and 1.12 mNAV on a fully diluted basis. This indicates that investors are valuing BitMine almost exactly in line with its crypto assets.

The situation mirrors Lee’s comments from mid-October, when he said several digital asset treasuries had started trading below their net asset value, suggesting that “the bubble may have burst.” During that period, mNAV ratios for several Ethereum-focused treasuries had slipped below 1.

Broader Market Context and Investor Sentiment

The recent developments highlight growing caution among investors toward crypto treasury companies. When valuations move close to asset parity, markets signal a focus on real asset value rather than speculative premiums. This near-parity environment shows that investors are neither heavily discounting nor rewarding firms beyond their core holdings.

Lee’s post comes at a time when massive capital inflows continue into traditional equity markets, while crypto valuations experience pressure. The contrast underscores a divided sentiment where traditional assets are attracting strong demand as digital assets undergo sharp corrections.

Also Read: OG Insider Just Shorted XRP and BTC Ahead of Trump’s Announcement – What’s Going On?

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