ETH Plummets: Smart Money Bets Against Ethereum
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ETH Plummets: Smart Money Bets Against Ethereum
The world’s largest corporate Ethereum (ETH) holder, BitMine Immersion Technologies, has continued to buy the dip despite the industry’s most successful traders betting on Ethereum (ETH)‘s price fall. According to some sources, BitMine acquired $199 million worth of Ethereum (ETH) during the past two days, through a $68 million ETH acquisition on Saturday and another $130.7 million buy on Friday.
BitMine’s Conviction in Ethereum’s Long-Term Growth
With the latest investments, BitMine now holds $11.3 billion, or 3.08%, of the total Ethereum (ETH) supply, closing in on its 5% accumulation target. This significant investment is a strong sign of conviction in Ethereum (ETH)‘s long-term growth potential. The company holds an additional $882 million in cash reserves, which may be used for more Ethereum (ETH) accumulation.
Slowdown in Digital Asset Treasury Activity
BitMine’s investment comes amid a significant slowdown in digital asset treasury (DAT) activity, which saw corporate Ethereum (ETH) acquisitions fall 81% in three months, from 1.97 million Ethereum (ETH) in August to 370,000 in net ETH acquired in November. Despite the slowdown, BitMine accumulated the lion’s share, or 679,000 Ethereum (ETH) worth $2.13 billion during the past month.
Smart Money Traders Bet on Ethereum’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 Ethereum (ETH)‘s price. Smart money traders added $2.8 million in short positions over the past 24 hours, as the cohort was net short on Ethereum (ETH), with a cumulative short position of $21 million.
Ethereum Exchange-Traded Funds Lack Demand
Ethereum (ETH) exchange-traded funds (ETFs), a significant driver of liquidity for Ethereum (ETH), also continue to lack demand. The spot Ethereum (ETH) 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.
The recent developments in the Ethereum (ETH) market have significant implications for retail investors. As smart money traders bet on Ethereum (ETH)‘s price decline, it may indicate a potential trend reversal. However, BitMine’s continued accumulation of Ethereum (ETH) suggests a long-term bullish outlook. Retail investors should closely monitor the market and consider their own risk tolerance and investment strategies. The Bitcoin (BTC) market may also be affected by the developments in the Ethereum (ETH) market, as the two assets are often correlated. As the crypto market continues to evolve, it is essential for investors to stay informed and adapt to the changing landscape.
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image source: cointelegraph.com