Most Critical Moment for Crypto Has Passed, According to Expert

Veteran investor Tom Lee thinks the worst of the recent market correction is probably over.

In an interview with CNBC, Lee, founder of Fundstrat, pointed to the volatility index (VIX) as a key indicator.

He noted that the VIX recently reached 60 points, one of its highest levels on record, and marked the steepest inversion of the futures curve since before the pandemic. However, both indicators are beginning to normalize. The expert believes that if the VIX falls below 20 and the futures curve stabilizes, it means that the peak of the market panic has passed.

Lee acknowledges potential ongoing ripple effects, such as concerns about trapped bulls and geopolitical tensions, but is optimistic that the underlying selling pressure has subsided. He likened the current market downturn to a “growth scare,” reflecting investor anxiety about the state of the U.S. economy.

The expert also highlighted the improvement in weekly jobless claims, particularly the substantial drop in Texas, as a positive sign for the market recovery. The market’s positive reaction to these jobless numbers supports his view that fear of growth is a major concern for investors right now.