Bitmine Nears 5% Ethereum Stake After $18B Buy as ETH Dips 30% Below 200-Week SMA
BMNR•Bitmine holds 4.59% of Ethereum’s circulating tokens after investing $18 billion and is nearing its 5% ownership goal, even as Ether trades roughly 30% below its 200-week SMA for only the second time. This stark price weakness raises questions about where the next influx of demand will originate for Ethereum.
1. Ethereum breaches 200-week SMA
Ethereum is trading roughly 30% below its 200-week simple moving average for only the second time in history, a zone previously seen only during extreme market stress.
2. Bitmine’s stake accumulation
Tom Lee’s Bitmine has invested $18 billion to amass 5.4 million ETH, representing 4.59% of the total supply, and is staking over 80% of its holdings to generate yield.
3. Demand concerns and valuation impact
With Bitmine approaching its 5% ownership target, analysts question where the next large-scale ETH purchasing will come from and how ongoing price weakness may affect Bitmine’s treasury valuation.
4. Community debate on recovery
Some market participants argue Ethereum must restore deflationary dynamics to boost confidence, while bullish observers counter that a potential rebound could catch many investors off guard.
