BitMine And Trend Research Lead Ethereum Buying Spree Amid Market Weakness

TLDR

• BitMine and Trend Research purchased millions in Ethereum despite market weakness.
• BitMine now holds over 4 million ETH, signaling strong confidence in Ethereum.
• Trend Research plans $1 billion more for Ethereum purchases despite unrealized loss.
• Ethereum long-term holder selling activity has decreased by over 95%.

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Despite recent price weakness in Ethereum, major institutional players and whales are doubling down on their investments, signaling strong long-term confidence. BitMine Immersion Technologies and Trend Research have made significant ETH purchases, bringing millions of dollars into the asset. These moves, along with reduced selling from long-term holders, highlight a clear trend: while the market faces challenges, key investors are betting on Ethereum’s future potential.

BitMine and Trend Research Continue Ethereum Accumulation

Despite recent price weakness, major institutions have shown continued confidence in Ethereum. BitMine Immersion Technologies and Trend Research are among the top players leading the latest buying spree. According to blockchain analytics firm Lookonchain, BitMine purchased a total of 67,886 ETH worth approximately $201 million. This followed an earlier acquisition, bringing BitMine’s total Ethereum holdings to more than 4 million ETH.

BitMine’s strategy highlights a broader accumulation pattern, undeterred by the recent market downturn. The firm’s continued investment, even as Ethereum’s price sits at around $2,929, suggests that it is focused on long-term gains rather than short-term price movements. Ethereum’s performance has been mixed recently, down nearly 3% this week alone, but BitMine remains firm in its belief that the asset will perform well over time.

Trend Research Joins the Ethereum Buying Trend

Trend Research, led by Jack Yi of LD Capital, has also been actively purchasing Ethereum. The firm acquired 46,379 ETH, bringing its total holdings to about 580,000 ETH, valued at approximately $1.72 billion. Yi revealed that Trend Research is preparing to deploy another $1 billion to acquire more Ethereum in the coming months. Despite facing an unrealized loss of about $141 million on its purchases, the firm maintains a strong belief in Ethereum’s future.

In a statement, Yi advised against shorting Ethereum, expressing confidence that the market would rebound. Trend Research’s strategy echoes BitMine’s, with both firms showing a long-term perspective despite current market conditions. This suggests that major institutional players see Ethereum’s potential as a growing blockchain asset, even if the short-term price action remains volatile.

Large Whales Add to Ethereum Holdings

The trend of Ethereum accumulation is not limited to institutions like BitMine and Trend Research. Large on-chain whales are also increasing their Ethereum holdings. The wallet known as the “66k ETH Borrow” whale, which had previously acquired over 528,000 ETH, added another 40,975 ETH, valued at around $121 million.

This brings the whale’s total holdings to over 569,000 ETH, with a significant portion of the purchases funded by borrowing from decentralized lending platforms. While these whales continue to accumulate Ethereum, other large players have taken a more cautious approach. For instance, Arthur Hayes, the former CEO of BitMEX, sold 1,871 ETH in the past week to rotate into DeFi assets.

Hayes has been diversifying his portfolio by shifting from Ethereum to DeFi tokens, signaling that not all large investors are solely focused on Ethereum. Furthermore, the “Bitcoin OG whale” deposited 100,000 ETH into an exchange, suggesting a potential selling move, though it is unclear whether this will result in actual liquidation.

Long-Term Holder Selling Activity Declines

While some large investors have been reducing their Ethereum positions, long-term holders are increasingly holding onto their assets. According to BeInCrypto, selling activity among long-term Ethereum holders has dropped by more than 95%.

This suggests that many holders remain confident in Ethereum’s future potential, despite the current market weakness. The reduced selling could indicate that investors are waiting for a more favorable price environment before making significant moves.

The decline in selling activity among long-term holders is a positive sign for Ethereum’s future, as it reflects confidence in the asset’s long-term prospects. While short-term market fluctuations may create uncertainty, the reduced selling pressure from long-term holders could provide stability for Ethereum’s price in the months to come.

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