Ethereum has fallen for six straight months, but institutions continue to accumulate below $2,000

For some institutional investors, trading ETH below $2,000 represents an opportunity rather than a risk, although concern is growing over increased unrealized losses.

ETH has now entered its sixth consecutive month of decline. This represents the longest losing streak since the downtrend of 2018.

Sponsored

Sponsored

Tom Lee and K3 Capital raise ETH Holdings as staking ratio hits all-time high

According to Lookonchain, Tom Lee – founder of Fundstrat and chairman of Bitmine – made significant purchases of ETH during the third week of February.

On February 18th alone, Bitmine purchased an additional 35,000 ethane worth approximately $69.37 million. Purchase included 20,000 ETHworth $39.8 million, from BitGo, And 15,000 ETH $29.57 million from FalconX.

As she stood up K3 Capital With a big step. appears OnchainLens data shows that a wallet linked to the investment fund bought 20,000 ethane worth $40.08 million from Binance.

These large transactions reflect a strong long-term belief in the value of ETH, even with the asset trading below $2,000.

CryptoRank data indicates to Long-term investors have been hoarding Ethereum during the current recession.

At the same time, CryptoQuant data shows that inflows to ETH storage addresses in the last six months have reached the most active period in history. appears The story is that in 2018, ETH experienced seven consecutive months of decline before recovering.

Sponsored

Sponsored

“Whales and the biggest banks have been buying and building on investment-grade ETH. These are the highest flows into the whales’ accumulation portfolios that we have seen to date. Meanwhile, the retail sector has given up and is calling for bankruptcy. They are tired and weary after seeing prices fall in this huge range for five years.” – Comment Cryptocurrency investor Seth.

Another major stage has emerged. For the first time in Ethereum’s eleven-year history, more than half of Ethereum’s total supply has been allocated.

It is useful On-chain data platform Santiment reports that more than 50% of the ETH supply now resides in Proof-of-Stake (PoS) nodes.

This contract acts as a one-way security. Investors deposit ETH into storage to secure the network. Shocking coins are temporarily out of circulation and cannot be exchanged.

Stocking activity continued to increase, especially during downturns. As more ETH is locked up, the liquid supply decreases.

“When more than 50% of the supply is locked in storage, the liquid supply is reduced. The number of coins available for trading is lower. This reduces the selling pressure and makes the market more sensitive to new demand.” He said Auditor Everstack.

I explained Everstake claims that 50.18% represents the total value of ETH held by an Ethereum PoS contract address, while the remaining 30% is an active stake.

However, recent analyzes conducted by BeInCrypto do not rule out the possibility The ETH value falls further to $1,385 in the short termaverage worst Wave of markets It has assisted him over the years.

Even if this scenario takes place, data on the chain suggest that large investors and institutions continue to position for a long-term recovery.