Quick overview

Live ETH/USD Chart

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Ethereum failed to reach the $3,100 support level after losing 4% of its value over the previous day. The coin is currently trading at about $3,054 per coin after briefly falling below $3k.

 

ETH is still performing poorly despite BitMine Immersion Technologies, an Ethereum treasury company, announcing on Monday that it purchased 54,156 ETH last week, increasing its holdings to 3.56 million ETH. The company also stated that it had cut its $61 million investment in Worldcoin (WLD) Treasury Eightco Holdings (ORBS) to $37 million.

BitMine has made fewer acquisitions than this one since launching its ETH treasury in July.

This coincides with the recent weeks of bearish price movement in the larger cryptocurrency market. Thomas Lee, the chairman of BitMine, claims that the market’s current weakness is a sign that a major market maker’s balance sheet is deteriorating.

He went on to say that when a market maker has a “hole” in their balance sheet, they are trying to raise money and cutting back on their market liquidity functions. This has the effect of dampening prices and is the crypto equivalent of quantitative tightening, or QT. This QT effect persisted for six to eight weeks in 2022. And this is most likely taking place right now. Lee, however, thinks that cryptocurrency prices haven’t reached their peak for this cycle and that the market may continue to rise for another 12 to 36 months.

According to CryptoQuant’s on-chain data, BitMine currently has an unrealized loss of $3 billion because of ETH’s recent, steady decline.

Maartunn, a contributor to CryptoQuant, noted that MicroStrategy’s unrealized loss peaked at $1.9 billion during the worst of the bear market. BitMine continues to hold the largest ETH treasury, surpassing both The Ether Machine (ETHM) and SharpLink Gaming (SBET). Additionally, US spot Ethereum exchange-traded funds are revealed by data from SoSoValue.