The crypto market saw another period of consolidation this week. Bitcoin remained strikingly stable around the psychological $90,000 mark, while large investors capitalized on the recent dip in Ethereum. These so-called ‘whales’ are buying aggressively, which analysts suggest could be a signal that the market is forming a local bottom.
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Background: Crypto Sentiment Remains Fragile Despite Recovery #
According to CoinMarketCap, market sentiment is still fluctuating in the “fear” zone, although the Fear & Greed Index improved slightly from 20 to 25 within a week. The market is also anxiously awaiting the U.S. Federal Reserve’s interest rate decision.
Investors are now pricing in an 87% chance that the central bank will implement a 25 basis point interest rate cut on Wednesday, significantly higher than the 62% expectation a month ago.
Ethereum Treasury Trade is Declining #
In the broader crypto market, Ethereum is particularly noteworthy. The much-discussed ’treasury trade’—where companies make large-scale Ethereum purchases—seems to be cooling down.
According to asset manager Bitwise, monthly purchases of digital Ethereum treasuries have fallen by 81% in three months: from 1.97 million Ethereum in August to 370,000 Ethereum in November.
Max Shennon, a senior researcher at Bitwise, stated on X that this is a clear “ETH DAT bear phase.”
Whales Keep Buying: Billions in Ethereum Picked Up #
However, the decline in corporate acquisitions doesn’t seem to apply to all players. The largest corporate Ethereum holder, BitMine Immersion Technologies, is actually significantly expanding its position.
The company purchased approximately 679,000 ether last month, valued at $2.13 billion. With this, BitMine has reached 62% of its goal to eventually hold 5% of the total ether supply.
Data from Strategicethreserve shows that BitMine also has $882 million in cash on hand. This could indicate further purchases in the near future—a signal that is not going unnoticed by market analysts.
Interpretation: Bottom Formation or Just a Pit Stop? #
While the buying spree from large players is generally seen as a positive sign, the broader market remains hesitant. The sharp drop in regular treasury purchases shows that many companies are waiting, possibly in response to recent volatility and uncertainty surrounding the Fed’s interest rate policy.
Furthermore, there is no clear direction visible for Bitcoin yet. The price has been hovering around $90,000 for days, indicating a market waiting for a new catalyst.
Investors are now primarily looking to Wednesday’s interest rate decision. A rate cut could give new momentum to the crypto market, but as long as official confirmation is lacking, caution remains advised.
The movements of whales do signal that large parties retain long-term confidence in Ethereum—a development that will be closely monitored in the coming weeks.