BitMine, a company that has adopted Ethereum 
$2,265 as its reserve asset, amassed billions of dollars in just a few months, even as Ethereum’s price continues to decline. On this day, a detailed announcement was made regarding the current status and future bullish expectations. This development sparks significant interest in the cryptocurrency community, given the market’s volatile nature and BitMine’s strategic maneuvers.
Ethereum Reserve Company
Though the initial momentum has not sustained, Ethereum reserve companies remain resilient, with BitMine announcing that its total assets have reached $11.8 billion, and its Ethereum reserves approached 3.6 million. At the time of writing, Bitcoin 
$76,480 had fallen back to $93,000, while Ethereum struggled to maintain $3,100. BitMine is resolute in increasing its holdings, holding approximately $607 million in cash to facilitate further purchases.
Currently, BitMine controls 2.9% of the available Ethereum supply and aims to increase this to 5%. Having already made it halfway to their goal, they hold 3,559,879 ETH, with an average acquisition cost of $3,120. Notably, ETH’s current market value hovers around the same price level.
Cryptocurrency Bull Predictions
Thomas Lee of Fundstrat, the head of BitMine, attributes the recent price drops to certain market makers. Particularly, unusual movements observed on October 10 highlighted potential issues related to market makers. During this period, some pairs hit zero, and discrepancies in prices across exchanges significantly widened.
“Since the liquidation event on October 10, crypto prices have not recovered. The ongoing weakness highlights a weak balance sheet for one (or two) market makers. When a market maker’s balance sheet has ‘gaps,’ it seeks to raise capital, reducing its market liquidity functions. This equates to QT (quantitative tightening) for crypto, leading to price drops. In 2022, this QT effect lasted 6-8 weeks, and perhaps, it is occurring again.”
“However, we do not believe crypto prices have peaked for this cycle.”
Lee predicts that the peak of the crypto cycle could be observed within 12-36 months, stating that current market conditions differ from those of previous cycles.
“The fourth quarter is a seasonally strong period for crypto and stock prices, historically prompting investors to increase ‘open positions,’ which should improve related trading volumes in the coming weeks.”
