Key Points
- Ethereum faced a sharp sell-off on October 21st, dipping below the $4,000 mark.
- BitMine purchased 63,539 ETH worth approximately $251 million during the market downturn.
On October 21, Ethereum experienced a significant sell-off, falling below the $4,000 threshold. This was a 5% decrease within 24 hours. Despite the drop causing retail investors to react nervously, institutional players saw this as an opportunity rather than a cause for concern.
According to on-chain data, BitMine, a blockchain infrastructure firm, seized this opportunity. The company purchased 63,539 ETH, equivalent to roughly $251 million, amidst the market fall. These transactions were carried out from major exchanges Kraken and BitGo to three new wallets associated with BitMine.
BitMine’s Accumulation of Ether
Under the guidance of seasoned market analyst Tom Lee, BitMine has been consistently amassing one of the largest corporate Ether treasuries. Currently, the company holds about 3.29 million ETH, valued at over $13 billion, which represents 2.73% of the total supply.
BitMine’s long-term goal is to accumulate 5% of Ethereum’s circulating supply. Lee recently referred to the ongoing correction as a “buying opportunity” and deemed the current phase part of a larger “Ethereum supercycle.”
Lee maintains a bullish price target of $10,000 to $12,000 for ETH by the end of 2025. This prediction is based on increasing institutional adoption and macroeconomic tailwinds.
Analysts Predict Near-Term Rebound
As of the time of writing, Ether is trading around $3,880 with a market cap of $468 billion. On October 20, spot Ethereum ETFs recorded another day of heavy withdrawals, facing $145.6 million in outflow.
Despite the recent decline, several analysts remain positive about Ethereum’s short-term outlook. Crypto expert Ali Martinez, who earlier predicted an ETH pullback, has now raised his target to $4,440. His prediction is based on ETH’s rebound from the lower boundary of a descending parallel channel, which has been forming since August.
Supporting this optimism, trader Merlijn compared Ether’s price behavior to gold’s setup in 2024, before the precious metal hit a new all-time high. He suggested that Ethereum could soon follow a similar breakout path, potentially surging to $10,000.
