Core Viewpoint - The recent decline in Bitcoin and Ethereum is attributed to a mechanical issue rather than fundamental factors, as argued by Fundstrat's Tom Lee [1][4]. Group 1: Market Dynamics - A significant liquidation event on October 10 led to a severe drop in liquidity among major market makers, causing a cascading effect in the crypto market [2][4]. - A pricing glitch on an exchange caused a stablecoin to drop to $0.65, triggering auto-deleveraging that liquidated nearly two million accounts [3][4]. - The balance sheets of market makers were severely impacted, forcing them to de-risk and sell into a weakening market, resulting in a prolonged decline similar to the 2022 washout [4]. Group 2: Future Outlook - Tom Lee predicts that Bitcoin could bottom around $77,000 and Ethereum around $2,500, with recoveries in past cycles typically being faster than declines due to pent-up demand [5]. - Historically, crypto markets have rebounded sharply within eight weeks after selling pressure from market makers subsides [6]. - Despite current volatility, Ethereum's long-term value proposition remains strong, with Lee describing it as a "neutral, 100%-uptime blockchain" that is undervalued and gaining strength relative to Bitcoin [6].