A recent string of cryptocurrency exchanges suspending operations could be a signal the market is near a bottom, an assessment said.

On July 26, blockchain outlet U.Today reported that Fundstrat co-founder Tom Lee (톰 리) said exchange closures amid recent industry turmoil could instead point to a cycle low.

In a post on X, formerly Twitter, he wrote: "This usually happens at the bottom of a cycle." His remarks came shortly after BitMart, once among the world’s large exchanges by trading volume, announced plans to shut down its trading platform.

BitMEX’s exit plan is also drawing attention in the same context. BitMEX, which once held a dominant position in the bitcoin derivatives market, confirmed it plans to stop operations within this year. As even large exchanges that grew by promoting perpetual futures swaps withdraw from the market, debate inside and outside the industry is continuing that the intensity of the bear market is deeper than expected.

Market participants are also focusing on whether these exchange closures are a signal of an industry shift beyond problems at individual companies. Changpeng Zhao (창펑 자오), Binance’s founder, has also said in a deleted post that the current situation could be a sign of a market bottom. He also said acquiring small centralized exchanges is harder than buying other businesses, noting that acquirers take on potential security risks as well.

Lee maintained long-term optimism on ethereum despite the broader market downturn. Earlier this month, he argued that ethereum is entering a 2.0 phase. He also compared ethereum’s potential for evolution to inflection-point growth seen at Amazon, Nvidia and JPMorgan.

He also laid out expectations for ethereum’s role. Lee said ethereum could become the dominant payment layer for traditional finance and artificial intelligence agents. His long-term target is $250,000. He maintained the view despite recent market weakness and large unrealized losses related to ethereum held by BitMart. He also said that as year-end approaches, cryptocurrencies are among the most attractive risk-reward opportunities.

He recently echoed Fidelity’s view in urging the U.S. Congress to pass the Clarity bill. He said that if the bill is not passed, the United States could be put at a disadvantage in the competition.

The market is therefore watching whether more exchange restructuring will follow and whether that pressure will actually lead to confirmation of a bottom in the cryptocurrency market. At the same time, long-term expectations surrounding ethereum and debate over U.S. regulatory improvements are emerging as points to watch for how they will affect market sentiment in the second half of the year.