Main points
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BitMine continues to buy, but Ethereum’s price remains weak.
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Tom Lee had previously said surrender was imminent.
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Analysts warn risks are low.
BitMine, led by Fundstrat’s Tom Lee, continues its ethereum acquisition spree, snapping up tens of millions of dollars worth of tokens even as ETH prices struggle to regain $2,000 levels.
This positive accumulation comes amid what Lee calls a cryptocurrency “mini-winter,” with market sentiment sluggish to levels close to previous market bottoms.
However, despite strong institutional demand, Ethereum’s price failed to sustain a sustained rebound.
BitMine, chaired by Fundstrat’s Tom Lee, said it bought 45,759 Ethereum last week for about $90 million, its largest weekly purchase this year, as the company continues to build an Ethereum-focused vault.
Buying has continued into this week.
Market commentator Ted Pillows said the company added about $68.7 million worth of Ethereum in recent days, noting that Ethereum’s price still struggles to stay above $2,000.
BitMine currently holds about 4.37 million ETH, accounting for about 3.6% of the circulating supply, and said it aims to hold a 5% stake under its so-called “5% Alchemy” strategy.
The company recently reported assets of $9.6 billion, with $670 million in cash and a large stake, yielding an annualized return of about 2.9%.
Despite this strategy, the company expects to face billions of dollars in unrealized losses after accumulating during periods of rising prices.
Lee believes deteriorating sentiment and weak price action suggest the market is in the final stages of capitulation, a pattern he likened to the depth of the 2018 downturn and the November 2022 lows.
Lee said in a recent interview that investor psychology is characterized by “loneliness and depression,” which he believes is typical of conditions near cyclical bottoms.
However, unlike previous crypto winters, he noted that there were no major systemic failures among industry players.
Citing analysis from technician Tom DeMark, Lee said Bitcoin could fall towards $60,000, while Ethereum’s price could find a bottom around $1,890 after losing support near $2,400.
He added that Ethereum has actually reached that target area and may need “another weakening” before establishing a lasting low.
Lee said he expects the broader cryptocurrency downturn to end by April at the latest.
Analysts remain cautious about the outlook.
On Wednesday, CCN analyst Victor Olanrewaju said that the short-term structure of Ethereum remains bearish.
