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- Bitmine and Arthur Hayes are aggressively buying ETH despite significant market volatility and unrealized losses.
- Technical indicators show investor emotion has bottomed out, a state that often precedes long-term price recoveries.
- High-leverage traders like Jeffrey Huang add systemic risk to the market through aggressive, high-stakes bets.
The Ethereum market has split into two worlds. On one side, retail investors are reeling from a 37% monthly collapse that has pushed the price toward a precarious $2,000 level. On the other, “smart money” is treating the blood in the streets as a massive clearance sale.
Institutional Giants Double Down
While smaller wallets panic, industry heavyweights are aggressively expanding their positions. Data reveals that Arthur Hayes recently moved 1,000 ETH—roughly $1.99 million—into Bybit, signaling active market positioning amidst the chaos.
More striking is the activity from Tom Lee’s Bitmine. The firm recently scooped up 45,759 ETH for $90.83 million. This brings Bitmine’s total stash to over 4.3 million ETH, valued at approximately $8.68 billion. Interestingly, the firm is currently weathering an unrealized loss exceeding $8 billion, given an average entry price of $3,821. This “diamond hands” approach from institutional players suggests a conviction that current prices are a temporary deviation from a much higher long-term value.
The “Cold Phase” of Market Sentiment
The current stagnation isn’t just about price; it’s about a total loss of momentum. Analysts at Alphractal point to a “market temperature” near zero, a state where emotional trading has essentially vanished. Historically, this “cold phase” occurs after a wave of panic selling leaves only the most patient—or the most trapped—investors behind.
Current MVRV (Market Value to Realized Value) data shows that recent buyers are deep in the red, leading to a state of “investor paralysis.” Short-term traders have largely checked out, leaving Ethereum in a low-energy sideways grind. Without a fresh catalyst, the asset is struggling to find the “spark” needed for a rebound.
High-Stakes Gambles and Liquidation Risks
Not everyone is playing the long game with steady hands. Jeffrey Huang, known in the space as “Machi Big Brother,” has taken a far more volatile path. Reports indicate Huang lost over $27.5 million in less than three weeks and has faced 145 liquidations since late 2025.
Also Read: Polygon Flips Ethereum: 5 Reasons Why Small Fees Are Winning Big
Rather than de-risking, Huang has pivoted toward high-leverage bets on Bitcoin and Ethereum, selling off spot holdings to fund his gambles. This aggressive behavior highlights the underlying tension: while institutions build foundations, high-leverage liquidations remain a constant threat to market stability.
Despite the gloom, some analysts remain defiant. Many project that Ethereum is currently carving out a generational bottom, with long-term forecasts still eyeing the $10,000 mark by 2027. For now, Ethereum remains a battleground between those fearing a further drop and those betting billions on a comeback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
