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BitMine Is Confident in Ethereum’s Recovery: Here’s Why

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Ethereum’s Realized Price Analysis Showing the Gap Between On-Chain Cost Basis and Market Price

Ethereum (ETH) is holding below $2,000, leaving many investors underwater as the downtrend extends into February 2026.

Despite the sustained weakness, BitMine has maintained a bullish stance on Ethereum. This raises a key question: Is their confidence driven by narrative or sentiment, or is there another factor behind their conviction?

Ethereum’s Pain Reaches 9th Decile: What Does That Mean For The Price?

In a detailed post on X (formerly Twitter), BitMine highlighted the research by Sean Farrell, Fundstrat’s Head of Digital Asset Strategy, focusing on Ethereum’s realized price. This is an on-chain valuation metric that reflects the average acquisition cost of all coins currently in circulation.

According to the data, Ethereum’s realized price stands at $2,241. At the time of the analysis, the asset was trading near $1,934. 

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This leaves the average holder in the red. According to Fundstrat’s model, the “loss for realized price was 22%.”

Ethereum’s Realized Price Analysis Showing the Gap Between On-Chain Cost Basis and Market Price
Ethereum’s Realized Price Analysis Showing the Gap Between On-Chain Cost Basis and Market Price. Source: X/BitMine

The analysis compared the current drawdown to prior cycle lows. During the 2022 bear market, Ethereum traded as much as 39% below its realized price. In 2025, the discount reached approximately 21%. 

“If we apply this ‘loss’ to the current realized ETH price of $2,241, we get implied ‘lows’ for ETH. Using 2022, this implies $1,367. Using 2025, this implies $1,770,” the analysis noted.

Using a decile analysis, the post revealed that the current drawdown falls into the 9th decile (extremely high). For context, a decile analysis is a quantitative method used in statistics, finance, and marketing to segment a dataset into 10 equal-sized groups (deciles) based on the distribution of a specific variable.

The data suggests that the median 12-month forward return in this decile was approximately 81%, with a 12-month win ratio of 87%. In other words, in most historical instances when ETH reached similar drawdown levels, it was trading higher one year later.

“Is this the bottom? Seems like we are closing in on that low. Looking beyond the near-term, the risk/reward for ETH is positive,” the post read.

ETH Returns by Decile
ETH Returns by Decile. Source: X/BitMine

BitMine Chairman Tom Lee previously emphasized that sharp drawdowns are a recurring feature of Ethereum’s price history. Since 2018, ETH has experienced eight separate declines of 50% or more from local highs, suggesting that corrections of this magnitude have occurred roughly once per year.

In 2025, Ethereum fell 64% between January and March. Despite that steep drop, the asset later rebounded significantly.

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“ETH sees V-shaped recoveries from major lows. This happened in each of the 8 prior declines of 50% or more. A similar recovery is expected in 2026. The best investment opportunities in crypto have presented themselves after declines. Think back to 2025, the single best entry points in crypto occurred after markets fell sharply due to tariff concerns,” Lee said.

Ethereum Recovery Could Be Critical for BitMine’s $7 Billion Underwater Position

If Ethereum delivers a sustained recovery with strong upside returns, it could represent a meaningful inflection point for investors, particularly BitMine. The company’s unrealized losses have expanded to approximately $7 billion, according to CryptoQuant data.

BitMine Unrealized Losses on Ethereum Holdings
BitMine Unrealized Losses on Ethereum Holdings. Source: CryptoQuant

At the same time, BitMine appears to be reinforcing its bullish stance through continued accumulation. Lookonchain reported that the firm purchased 10,000 ETH from Kraken today.

This transaction followed a much larger single-day acquisition of 35,000 ETH. BitMine acquired 20,000 ETH from BitGo and 15,000 ETH from FalconX.

Taken together, the purchases suggest that despite mounting unrealized losses, BitMine is positioning for a potential upside scenario rather than reducing exposure.

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Crypto World

Here’s why the Ethereum-based privacy token AZTEC price is rising

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Here’s why AZTEC price is rising
Here’s why AZTEC price is rising
  • AZTEC has surged nearly 80% after listing on major Korean exchanges.
  • AZTEC has gained traction as a privacy-focused Ethereum Layer 2 solution.
  • Key levels to watch are the support at $0.0188 and the resistance at $0.0371.

The Ethereum-based privacy token AZTEC has seen a dramatic surge in its price over the last 24 hours.

The current price of AZTEC is around $0.035, representing an impressive increase of nearly 80% in a single day.

Aztec price
Source: Coingecko

Trading volumes have also spiked, reflecting heightened market activity and strong investor interest.

Exchange listings fuel the rally

One of the main drivers behind AZTEC’s surge is its listing on major South Korean exchanges.

Upbit and Bithumb have added AZTEC trading pairs, including KRW-denominated options.

These listings make it easier for South Korean retail traders to access the token directly, without needing USDT or BTC as intermediaries.

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The immediate effect has been a sharp increase in buying pressure, pushing the token to new all-time highs.

Such regional exchange activity often creates a premium, as local traders bid aggressively in the initial hours after a listing.

This surge is further supported by the token’s presence on global exchanges like Coinbase, Kraken, Bybit, KuCoin, and MEXC, which listed the token on February 12, immediately after the protocol went live.

What is AZTEC?

AZTEC is not just another altcoin.

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It is the native token of Aztec, a privacy-focused Layer 2 protocol built on the Ethereum Network.

The protocol uses zero-knowledge proofs to enable private transactions while maintaining Ethereum’s security standards.

This combination of privacy and scalability makes Aztec particularly appealing to users and developers looking for confidential and efficient transaction solutions.

Recent protocol upgrades and network developments have also helped strengthen confidence in the token.

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Investors see both short-term trading opportunities and long-term potential as adoption grows.

The market’s response reflects the perception that privacy solutions on Ethereum are gaining traction in a competitive landscape.

AZTEC price forecast

For traders and investors alike, the coming days will be crucial in determining if AZTEC can sustain its momentum and reach higher price levels.

The immediate support lies near $0.0188, which was the lower bound of the recent 24-hour range.

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On the upside, the immediate resistance is at the current all-time high of around $0.0371.

If the token can break above $0.0371, the next area of interest may approach $0.04, a psychological barrier for many traders.

However, given the rapid pace of this rally, some short-term pullbacks are possible.

Volume trends and activity on both Korean and global exchanges will likely influence the next moves.

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In the short term, traders should watch for consolidation around the $0.03–$0.035 range, as this may determine whether the rally continues or enters a retracement phase.

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HBAR Price Recovery Stalls Below $0.10: What’s Holding It Back?

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HBAR MFI

Hedera’s native token, HBAR, is attempting to regain lost ground after weeks of constrained trading. The price recently approached the $0.10 threshold but failed to secure a decisive breakout. Since the beginning of the month, resistance near this level has limited upward progress.

While HBAR briefly reclaimed $0.10, momentum stalled just below a key technical barrier. Traders have adjusted their positioning, though not decisively in favor of sustained upside. 

HBAR Holders Are Buying

The Money Flow Index, or MFI, indicates that buying pressure is gradually building on HBAR. This volume-weighted momentum indicator measures capital inflows and outflows based on both price and trading volume. Currently, the MFI is positioned above the neutral 50 mark, signaling that buyers are regaining influence.

An MFI reading in positive territory suggests accumulation may be underway. Rising inflows often precede price appreciation, especially when supported by higher trading activity. If this trend continues, HBAR could benefit from sustained accumulation, strengthening the case for a recovery attempt above immediate resistance levels.

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Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

HBAR MFI
HBAR MFI. Source: TradingView

Hedera Traders Remain Skeptical

Broader derivatives data offer a mixed but slightly constructive outlook. HBAR’s funding rate is currently skewed toward long positions, indicating that traders are willing to pay a premium to hold bullish contracts. Positive funding rates typically reflect expectations of upward price movement.

However, volatility in the funding rate over the past two weeks highlights lingering uncertainty. Between February 6 and February 11, short contracts dominated open interest, placing downward pressure on HBAR. This dominance quickly reversed, turned positive, and then shifted negative again.

HBAR Funding Rate
HBAR Funding Rate. Source: Coinglass

Such fluctuations reveal hesitation among leveraged traders. Although short dominance has declined recently, conviction remains fragile. Stable positive funding would strengthen the bullish thesis, but current data suggests sentiment is still reactive to short-term price swings rather than anchored in long-term confidence.

HBAR Price Aims High

HBAR is trading at $0.0992 at the time of writing. The token remains above the $0.0961 support level, which aligns with the 38.2% Fibonacci retracement. Holding this level is technically significant, as it represents a key inflection point for trend continuation.

However, resistance at $0.1035, at the 50% Fibonacci retracement, is capping upward movement and limiting breakout attempts.

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A decisive move above $0.1035 would signal a short-term structural shift. Turning this resistance into support could attract fresh demand, particularly if buying pressure continues to rise. 

HBAR Price Analysis.
HBAR Price Analysis. Source: TradingView

The next target would stand at $0.1109, corresponding to the 61.8% Fibonacci retracement. This level is widely monitored by traders and often acts as a strong support zone once reclaimed.

However, if bullish indicators fail to strengthen, consolidation may persist near current levels. Continued outflows would weaken breakout attempts and reinforce resistance at $0.1035.

A breakdown below the $0.0961 support would shift the short-term structure bearish. In that scenario, HBAR could decline toward $0.0870, invalidating the immediate recovery outlook and restoring stronger control to sellers.

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Tennessee Judge Blocks State Crackdown on Kalshi Markets

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Adoption, CFTC, Legislation, United States, Prediction Markets

A US federal judge in Tennessee temporarily blocked the state from enforcing its gambling laws against prediction markets operator Kalshi’s sports event contracts. 

The ruling, issued by Judge Aleta Trauger of the US District Court for the Middle District of Tennessee on Thursday, allows Kalshi to continue offering sports-related event contracts to users in the state while its lawsuit against Tennessee regulators proceeds.

Trauger found that Kalshi is likely to succeed on the merits of its claim that federal commodities law preempts Tennessee’s attempt to regulate its sports markets as illegal gambling. 

The court concluded that Kalshi’s sports event contracts are “swaps” under the Commodity Exchange Act, over which the law grants the US Commodity Futures Trading Commission (CFTC) exclusive jurisdiction, and held that Tennessee’s enforcement efforts are likely preempted under conflict preemption principles. 

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Adoption, CFTC, Legislation, United States, Prediction Markets
Preliminary injunction, Kalshi. Source: CourtListener

The injunction applies to the identified state officials, while the Tennessee Sports Wagering Council itself was dismissed on sovereign immunity grounds, and Kalshi was ordered to post a $500,000 bond.

Long-running clash with states

The Tennessee case marks another chapter in a broader clash over how to treat event contracts in the United States.

An earlier temporary restraining order from Trauger had already paused enforcement of Tennessee’s cease-and-desist letter, which alleged that Kalshi was operating unlicensed sports wagering, ordered it to stop offering sports event contracts to customers in Tennessee, void those contracts and refund deposits, and threatened fines and further legal action. 

Related: Nevada court hits Polymarket with temporary restraining order, tests CFTC control

Kalshi has similarly gone to federal court in multiple states, including Nevada, New Jersey, and Connecticut, over cease-and-desist actions targeting its event markets, with courts reaching divergent conclusions on whether to grant preliminary relief.

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CFTC steps in to defend prediction markets

​The injunction also lands against a shifting federal backdrop, as the CFTC moves to assert primacy over prediction markets.

In a video message on Tuesday, CFTC Chair Michael Selig said the agency had filed a friend-of-the-court brief to defend its “exclusive jurisdiction” over prediction markets, warning state authorities that the commission would meet them in court if they tried to undermine federal oversight of these derivative markets.

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