Ethereum may bounce back above the $2,000 level, but the broader cryptocurrency landscape is still struggling to regain an upward trajectory. Even as the market struggles with continued volatility, Ethereum buying activity at the institutional level is still not slowing down.
Another major Ethereum buy from Bitmine
When feelings seem to cool down, Bitmine Immersion Technologies Ethereum, the second largest cryptocurrency asset, doubled again. In a highly volatile sector, the company continues to expand its digital assets with strategic purchases of ETH.
In report from Milk Road, a market expert and investor, Bitmine secured an additional 60,976 units of Ethereum worth more than $122 million despite turbulent market conditions. This strategic move at a time of uncertainty underscores the company’s long-term confidence in the network and its prospects.
During this period, Milk Road emphasized that people tend to see Bitimine’s $10 billion paper loss and ignore what is underground. The $10 billion in paper losses is the result of ETH’s 62% drop from its previous highs, and the position is deeply underwater at current prices. However, the business continues to buy ETH and earn real money from the stack.
Bitmine currently has over 4.53 million ETH, which is 3.76% of the entire ETH supply in circulation. It is worth noting that more than 3 million people ETH holdings are locked in staking contractsand they are not only idle.
With this huge contribution of ETH, the company is currently making around $174 million per year from the stack. Moreover, this significant value is generated and added to the company’s balance sheet every year, regardless ETH share price.
This is a key feature that sets Ethereum’s treasury model apart in the crypto sector, even compared to Bitcoin’s treasury model. Referenced by Milk Road Michael Saylor Strategy, stated that their BTC fund only yields when the price rises. Meanwhile, with ETH, the yield can be obtained from various areas such as price and rate increases, as evidenced by the 174 million per year contribution of Bitmine regardless of market conditions.
ETH reflects a basic chart pattern
While the price of Ethereum is struggling, a market expert named Crypto Tice has identified an interesting and bold trend in the chart of ETH compared to Netflix. After comparing the movement of both charts, the expert has predicted a massive rise for ETH, similar to Netflix’s dramatic rise in 2009.
For years, Netflix has been in a range, and after multiple tests of support and rejection of resistance, the stock has exploded hundreds of percent higher. Currently, ETH is showing the same trend with pressure, frustration and surrender from the crowd.
Reflecting this trend in Ethereum, the expert believes that history will repeat itself and that ETH may see a bullish trend. move up. “The things that make the people down are the things that make the people up,” added Crypto Tice.
Featured image from Getty Images, chart from Tradingview.com
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