BMNR Stock Slips Below $50 Targeting $40 If Bitmine Support Breaks
After starting the week strong on renewed Ethereum optimism, BitMine (NASDAQ: BMNR) reversed course, sliding 7% as crypto markets turned low
Quick overview
- BitMine (NASDAQ: BMNR) experienced a 7% decline midweek after an initial surge driven by strong Ethereum accumulation and positive market sentiment.
- The company purchased 179,251 Ethereum tokens, raising its total holdings to 3.29 million coins valued at $13.4 billion, reinforcing its position as a major player in the Ethereum ecosystem.
- Despite its long-term strategy focused on Ethereum dominance, BitMine faces short-term volatility and potential deeper losses if market conditions do not stabilize.
- The recent pullback follows a turbulent September marked by a $365 million direct offering that diluted shareholder sentiment and led to a break below key technical support levels.
After starting the week strong on renewed Ethereum optimism, BitMine (NASDAQ: BMNR) reversed course, sliding 7% as crypto markets turned lower again.
Early-Week Optimism Fades Quickly
BitMine began the week with strong momentum, buoyed by its aggressive accumulation of Ethereum and improving sentiment across the crypto space. The stock surged above $55 on Monday after announcing the purchase of 179,251 Ethereum tokens, valued at roughly $820 million, bringing total ETH holdings to 3.29 million coins worth $13.4 billion.
BMNR Chart Daily – The 50 SMA Has Been Broken
This move reinforced BitMine’s reputation as one of the largest institutional players in the Ethereum ecosystem, second only to MicroStrategy in terms of digital asset reserves. The rally coincided with Ethereum’s rise above $4,700 and Bitcoin’s breakout past $126,000, both of which gave crypto-related equities a temporary lift.
BMNR Chart Daily – Can the 20 SMA Hold?
However, those gains quickly vanished by midweek as Ethereum prices retreated, pulling BitMine’s stock down nearly 7% on Tuesday, erasing most of its earlier advances.
Lingering Pressures from September’s Weakness
The pullback follows a turbulent September for BitMine, marked by heightened selling pressure after the company’s $365 million registered direct offering linked to its crypto reserves.
While the offering attracted institutional attention, it also diluted sentiment among existing shareholders. The stock fell below $50, breaking under its 50-day simple moving average (SMA)—a technically bearish development that rattled short-term traders.
The 20-SMA on the monthly chart briefly held as support last week, but persistent downside pressure threatens a deeper correction toward the $40 zone if current momentum continues.
Ethereum-Centric Strategy Faces Market Reality
BitMine’s leadership, guided by Tom Lee of Fundstrat, remains focused on long-term Ethereum dominance despite near-term volatility. The company’s ambition to control up to 5% of Ethereum’s circulating supply reflects a strong conviction that ETH will serve as a future balance-sheet reserve asset across industries.
To support this expansion, BitMine has set aside $635 million in cash for additional Ethereum purchases, maintaining its aggressive accumulation strategy even as broader crypto sentiment wavers.
Conclusion: Bold Vision Meets Short-Term Volatility
BitMine’s heavy Ethereum exposure amplifies both its upside potential and its vulnerability to sudden crypto reversals. While its large-scale ETH accumulation underscores long-term conviction, investors remain cautious as short-term price swings continue to test confidence.
Unless Ethereum stabilizes and sentiment improves, BitMine risks deeper losses—a reminder that even bold strategic bets can struggle against the volatility that defines the crypto market.
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