Key Takeaways
Why has BitMine accelerated its ETH strategy?
The recent ETH pullback was a juicy discount for BitMine, per Tom Lee.
Will the ETH’s price recovery continue?
Most likely, if broader sentiment improves, as the broader trend in October has been net accumulation in the Spot markets.
Tom Lee’s BitMine Immersion has upped its Ethereum [ETH] accumulation in Q4.
In October alone, the firm acquired 585,114 ETH, at about 200K coins per week. Overall, the company now owns 3,236,014 ETH or 2.7% of the overall supply.
Given that the ETH price dropped about 15% in the past two weeks, Lee scooped the dip perfectly. In fact, he said ETH’s value was at a ‘discount’ and that the flash crash was a juicy opportunity to add more ETH.
ETH price at an ‘attractive risk/reward’
Commenting on the latest $250M ETH purchase, Lee added,
“Open interest for ETH sits at the same levels as seen on June 30th of this year (ETH was $2,500). Given the expected Supercycle for Ethereum, this price dislocation represents an attractive risk/reward.”
The firm also reported 192 Bitcoin holdings, bringing their overall crypto stash to over $13B, second only to Michael Saylor’s Strategy.
Source: X/BitMine
That being said, ETH recovered from $3.6k to $4k earlier in the week amid easing macro tension. In fact, it marked a ‘W’ bottom on the price charts, a move that renowned financial analyst John Bollinger projected could extend its recovery.
As of press time, however, it had slipped below $4k again. The weakening momentum followed a third consecutive day of Daily Net Outflow of $145 million from Spot ETH ETFs on Monday.
Source: Soso Value
In other words, institutional investors were still cautious despite the improving macro front.
Overall, Exchange Supply has been on a decline, further underscoring the rising demand for ETH despite the short-term caution.
And a similar picture was painted for the October market dynamics. Notably, Exchange Neftlow for Spot markets has been sliding lower, suggesting that more ETH was moved off platforms than into them. That’s a bullish cue.
Source: CryptoQuant
In Q2, such a trend coincided with an explosive move $1.5K to $4.9K, a 3x run. That said, Polymarket was pricing a 44% chance of the ETH price hitting $5K in 2025.
The betters were also placing a 37% chance that the altcoin could tag $3K.
