Tom Lee sees Ethereum's 4% drop post-Binance hack as bullish sign

Tom Lee believes the muted market reaction to Binance's 6.3 billion dollar hack indicates a bull market is emerging. He noted Ethereum's 4% decline after the October 29 theft, which is significantly less severe compared to the 20% drop following the Bybit breach in February 2025. Lee described the market's response as 'very constructive,' highlighting the industry's resilience. He identified six factors contributing to the subdued reaction, including Binance's commitment to cover customer losses and the swift actions of stablecoin issuers. By November 2, Binance had replenished approximately 95% of the affected assets and confirmed that major cryptocurrencies were backed at least 1:1. Blockchain analytics firm Elliptic reported that 2.85 billion dollars in frozen or seized assets accounted for 44% of the theft. Lee also emphasized the rapid identification of the responsible hacking group by the FBI, contrasting it with previous incidents. Despite the downturn, BitMine continued to acquire Ethereum, increasing its holdings to 6,060,506 tokens, representing about 4.9% of Ethereum's circulating supply. However, BitMine's overall portfolio value dropped from 17.4 billion dollars on October 4 to 14.5 billion dollars on November 1.

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