Tom Lee, president of Fundstrat Research, characterized Monday’s market sell-off as an “overreaction.” In an interview with CNBC, Lee viewed NVIDIA’s (NVDA) double-digit drop as a significant opportunity post-Covid, suggesting it presents a favorable buying moment for traders.
NVIDIA Experiences Historic Decline
Lee’s perspective continues to maintain a positive outlook. Following a 3% drop, the Nasdaq has started to rise, with NVIDIA showing a 5% gain in pre-market trading.
Bitcoin and AI Miners Face Turbulence
The recent sell-off in NVIDIA resulted in its largest loss in daily market value, decreasing NVIDIA’s market cap by $465 billion. Bitcoin (BTC) 
$105,772 fell to $97,500 but rebounded above $103,000, with expectations of reclaiming the $105,000 level in the short term.
AI bitcoin miners, including Core Scientific, saw significant declines of up to 30%. Lee noted a healthy market structure in U.S. stocks and highlighted that Bitcoin has outperformed small-cap stocks and the financial sector since the beginning of the year.
Expectations are high for the Federal Reserve’s policy meeting scheduled for Wednesday, where interest rates are expected to remain steady in the 4.25-4.50 range. Lee expressed that markets are carrying uncertainties ahead of this meeting and that there is excessive concern over possible interest rate hikes in 2025.
“Markets dislike uncertainty; for me, this is an extreme reaction, and it will be a significant opportunity for traders,” said Tom Lee.
Lee’s analysis underscores that market movements provide long-term opportunities rather than just short-term fluctuations. Traders might consider leveraging opportunities that arise, especially after significant declines. Additionally, the upcoming Federal Reserve meeting continues to be a crucial factor influencing market expectations and trading strategies.
