It could be that investors are re-evaluating ETH’s potential in the long term, particularly as ETFs have attracted billions of dollars in new money while treasuries such as BitMine or SharpLink have absorbed the supply. BitMine recently increased its treasury by $65,000,000, bringing the exchange reserve to a 3-year low. Tom Lee, who is still very bullish about ETH’s future potential to reach $60,000, also predicted this.
Whales Accumulate Eth
Since Ethereum’s yearly lows were reached in April, Ethereum whales quietly and steadily increased their holdings. This shows renewed confidence in Ethereum’s potential. Santiment, a crypto sentiment platform, revealed that whale accounts holding 1,000 to 100,000 ETH added an additional 14% of coins in their portfolios over the last five months.
The accumulation pattern suggests that the market is moving towards optimism. This was especially evident when Ethereum rose sharply, from its low price on April 9, $1472, to its recent $4,366 – a gain of 190+%. Whale activity is often tracked by market watchers to determine the overall sentiment of the market, since large holders have a significant influence on price. Accumulation is often viewed as bullish, while large sales are seen as negative.
Some whales did not time the rally perfectly. Those who were forced to buy at higher prices after selling their cryptos near the bottom of the market are those caught. A crypto wallet sold 2,522 Ethereum for $3.9 Million in April. It then repurchased 1,425 Ethereum for $3.8 Million in May, when the price had already risen to $2,667.
The majority of Ethereum’s rise has been attributed by ETF inflows, and to the increase of corporate Treasury holdings. SharpLink Gaming, BitMine Immersion Technologies and other major investors began to accumulate ETH in June, when the price ranged between $2,228-$2,813. BitMine is now the biggest ETH treasury holder, with approximately $8.22 Billion worth of ETH. SharpLink Gaming holds $3.69 Billion. The total amount of ETH held by Ethereum treasury firms is now $15.83 Billion, which represents 2.97%.
ETFs are also a key catalyst for institutional flows. In August, Ethereum-based ETFs saw inflows of $3.87 Billion. Bitcoin ETFs saw outflows of $751 million. The strong demand fueled the speculation that ETH would climb much higher by year’s end.
Sean Farrell is the head of Fundstrat’s digital asset research. He suggested Ethereum might reach between $12,000 and $15,000 in December. Others are a little more conservative due to the recent drop in the ETH/BTC rate, which dropped 2.27% over the last week.
Arkham, a blockchain intelligence company, pointed this out and said that ETFs sold $135 millions worth of ETH recently while purchasing $332 million BTC. The divergence in the amount of ETH sold and BTC bought adds to the uncertainty over whether Ethereum will be able to maintain its momentum, or if interest from institutions will shift back towards Bitcoin.
Bitmine adds $65M to Ethereum
BitMine Immersion Technologies has added $65,000,000 worth of Ethereum to its Treasury in six separate transactions executed by Galaxy Digital’s Over-the-Counter Desk. It was BitMine’s first transaction of the month, and it further strengthened the position of BitMine. The company now holds over 1.5% the total Ethereum circulating supply.
Unleveraged cash purchases are confirmed by a company representative. This purchase coincides with the fact that Ethereum reserves at centralized exchanges have fallen to their lowest level in three years, down by 38% from 2022. Corporate treasuries, ETFs, and other investors continue to consume supply.
Ethereum Exchange Reserves ( CryptoQuant )
BitMine stock also reflected the market’s enthusiasm. Shares of BMNR ended Wednesday’s trading at $44.86, an increase of 5.58% for the day. After-hours, they dropped slightly to $44.62, a drop by 0.54%. The stock has risen 540% in the past year, but is still well below its peak price of $135 reached back in July. BitMine is still one of the more actively traded stocks with its average 10-day volume being 51.07 millions shares, and its average 30-day volume nearly 55,000,000 shares.
There are also rumors that Tom Lee will appear on the Joe Rogan Experience Podcast, which would bring BitMine or Ethereum even greater visibility. Tom Lee reiterated recently his bullish stance for ETH in an interview on Medici Presents Level Up, during which he reaffirmed the $60,000 price goal.
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Lee likened Wall Street’s interest in Ethereum with a “1971 Moment” and said it could transform the financial system, by driving assets and activities onto blockchain rails. Lee added that companies that hold ETH treasuries would be able to earn staking reward of around 3%. This is unlike ETFs which are restricted by their liquidity requirements. According to his estimation, this ability could increase the value of these companies by up to 90 percent.
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