Tom Lee’s Bitmine Just Bought $44 Million Of Ethereum, Bringing Weekly Total To $185 Million – BMNR Stock Climbs Amid ETH Recovery

• In a podcast earlier this week, Tom Lee said Ethereum’s sharp decline amid the crypto sell-off was a “forced washout” and not a break in fundamentals.
• Lee expects Ethereum could fall to $2,500 in the near term before a potential rally toward $7,000 to $9,000 by January.
• According to Lee, Bitmine’s strategic advisor, Tom DeMark, also believes it was a case of “engineered liquidation.”

Tom Lee-backed Bitmine Immersion Technologies (BMNR) bought more than $44 million of Ethereum (ETH) on Friday.

According to data on Arkham Intelligence, BMNR’s holdings rose $44.3 million on Friday, bringing its total purchases for the week to $185.6 million.

BMNR’s stock rose more than 8% in midday trade on Friday. On Stocktwits, retail sentiment around the Ethereum digital asset treasury (DAT) trended in ‘extremely bullish’ territory over the past day as chatter dipped to ‘normal’ from ‘high’ levels. 

Meanwhile, Ethereum’s price rose 1.45% over the last 24 hours, climbing back above $3,000. On Stocktwits, retail sentiment around the leading altcoin continued to trend in ‘bearish’ territory as chatter dipped to ‘low’ from ‘normal’ levels.

Tom Lee Predicts Ethereum Bull Run By January

In a podcast earlier this week, Lee stated that the drop in Ethereum’s price during the crypto sell-off wasn’t a sign of weakness, but a deliberate shakeout before a major rally. 

He predicted that Ethereum’s price could dip as low as $2,500 in the short run, but sees the potential for a three- to four-times surge toward $7,000 to $9,000 by January. Lee characterized the decline from $4,800 to $2,800 as a “forced washout” and argued that the setup improves if prices “bleed lower” before a reversal.

He added that Bitmine’s strategic advisor, Tom DeMark, shares the view that the recent sell-off was an “engineered liquidation,” not a structural breakdown. DeMark was brought on board in mid-November to “optimize” Bitmine’s Ethereum accumulation. 

Ethereum Gas Limit

The market is also bullish on Ethereum after co-founder Vitalik Buterin said that gas limits for the network are expected to keep rising, but in a more ‘targeted’ fashion, going forward. The network recently doubled its block gas limit to 60 million, up from 30 million a year ago.

Read also: Bitcoin Could Rally Toward $100,000 – CIFR, WULF ‘Impressive’ After Crypto Sell-Off, Analyst Reportedly Says

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