BitMine buys $199M in Ether as smart money traders bet on ETH decline
Analysis
Price Impact
MedBitmine's massive acquisition of $199m in ether signals strong conviction for eth's long-term growth. however, this is countered by 'smart money' traders betting on a short-term decline via short positions and continued outflows from ethereum etfs, creating conflicting signals for immediate price action.
Trustworthiness
HighThe analysis is based on data from reputable blockchain analytics platforms and investment trackers like lookonchain, strategicethreserve, nansen, and farside investors.
Price Direction
NeutralWhile bitmine's strategic accumulation is a significant long-term bullish indicator, the concurrent bearish sentiment from smart money short positions and negative etf flows points to short-term downward pressure or at least strong resistance, resulting in a neutral immediate price direction as these forces battle.
Time Effect
LongBitmine's continued accumulation towards a 5% supply target is a strategic, long-term investment decision. while 'smart money' shorts imply short-term bearishness, the corporate conviction suggests a more enduring bullish outlook over a longer horizon.
Original Article:
Article Content:
Zoltan Vardai 3 minutes ago BitMine buys $199M in Ether as smart money traders bet on ETH decline The largest corporate Ether holder continues to buy the dip, as the industry’s most profitable traders continue to bet millions on ETH’s short-term decline. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED BitMine Immersion Technologies, the world’s largest corporate Ether holder, continues buying the dip, despite the industry’s most successful traders betting on Ethereum's price fall. BitMine acquired $199 million worth of Ether ( ETH ) during the past two days, through a $68 million ETH acquisition on Saturday and another $130.7 million buy on Friday, according to blockchain data platform Lookonchain. With the latest investments, BitMine now holds $11.3 billion, or 3.08%, of the total Ether supply, closing in on its 5% accumulation target, according to data from the StrategicEthReserve . BitMine’s continued accumulations are a strong sign of conviction in Ether's long-term growth potential. The company holds an additional $882 million in cash reserves, which may be used for more Ether accumulation. Largest corporate Ether holders. Source: Strategicethreserve.xyz Related: Ethereum ICO whale cashes out $60M after 9,500x gain as top 1% keep buying ETH BitMine’s investment comes amid a significant slowdown in digital asset treasury (DAT) activity, which saw corporate Ether acquisitions fall 81% in three months, from 1.97 million Ether in August to 370,000 in net ETH acquired in November. Despite the slowdown, BitMine accumulated the lion’s share, or 679,000 Ether worth $2.13 billion during the past month. Related: Bitcoin now settles Visa-scale volumes, but most is for wholesale, not coffee Smart money traders are betting on Ether’s price decline The crypto industry’s best-performing traders by returns, who are tracked as “smart money” traders on Nansen’s blockchain intelligence platform, are betting on the short-term depreciation of Ether’s price. Smart money traders top perpetual futures positions on Hyperliquid. Source: Nansen Smart money traders added $2.8 million in short positions over the past 24 hours, as the cohort was net short on Ether, with a cumulative short position of $21 million, according to Nansen . Ethereum exchange-traded funds (ETFs), a significant driver of liquidity for Ether, also continue to lack demand. Ethereum ETF Flow USD, in million. Source: Farside Investors The spot Ether ETFs recorded $75.2 million in net positive outflows for the second consecutive day on Friday, following the $1.4 billion in monthly outflows in November, according to Farside Investors. Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom # Cryptocurrencies # Business # Ethereum # Investments # Adoption # Ethereum Options # Cryptocurrency Investment # Ethereum Price # Ethereum ETF # Nansen Add reaction