The market is tense, and many investors are offloading Ethereum, but analyst Tom Lee is taking a contrarian stance. His company, BitMine, is buying enormous amounts of ETH while the sentiment remains bleak. Why is one of the biggest players buying so aggressively right now?
In a period dominated by uncertainty and red charts, BitMine is choosing to double down on its long-term strategy.
BitMine Buys the Dip in an Uncertain Market #
BitMine purchased a staggering 138,452 ETH in a single week, valued at approximately $432 million (€364 million).
This brings the company’s total holdings to 3.86 million ETH, representing over 3.2% of all Ethereum in circulation. The firm is now more than halfway to its goal of owning 5% of the total ETH supply.
This significant acquisition comes at a challenging time for the asset. Ethereum has lost nearly 25% of its value since October. Furthermore, Ethereum funds saw $1.4 billion in outflows in November, with tens of millions more exiting in early December. Large volumes of ETH have also been moved to exchanges, often a sign of potential selling pressure.
However, Tom Lee sees opportunity amid the turmoil. He points to recent developments, such as the Fusaka upgrade, which is making the Ethereum network more efficient and secure. He also anticipates that lower interest rates from the U.S. Federal Reserve could help the market recover. BitMine therefore believes the coming months could be favorable, despite the short-term volatility.
Crypto Whales Also Bet on a Price Rise #
In addition to BitMine, large private investors are also showing confidence. Several whales have collectively put $426 million into long positions, betting that Ethereum’s price will increase.
The price is currently moving above $3,000 and follows an ascending pattern often seen as a precursor to a potential breakout toward $4,000. However, key resistance levels between $3,350 and $3,550 could still pose a challenge.
The combination of massive purchases by BitMine and substantial long positions from whales indicates that major players are strengthening their positions right now. While many investors remain cautious, confidence among these large entities appears to be growing.