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BitMine ramps Ethereum to 3.6% supply while price tests support

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What wiped out $1.7 billion?

Ethereum slid ~5% toward $1.9k as whale selling and ETF outflows hit sentiment, despite bullish RSI divergence hinting at a potential reversal.

Summary

  • ETH trades around $1.9k with key support at $1.8k–$1.85k; a daily close below opens $1.7k–$1.6k downside.
  • Spot ETH ETFs logged multi‑week net outflows in recent sessions, with single‑day withdrawals near $40m–$50m weighing on demand.
  • BitMine now holds about 4.42m ETH (3.66% of supply), mostly staked, while other whales and even Vitalik reduced exposure, adding mixed on‑chain signals.

Ethereum (ETH) traded near a critical support level as large holders sold significant amounts of the cryptocurrency, creating downward pressure despite technical indicators suggesting a potential reversal, according to market data and on-chain analytics.

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The cryptocurrency displayed bullish divergence on 12-hour charts, with the Relative Strength Index making a higher low while the price established a lower low over the prior month. This technical pattern typically precedes price reversals in traditional technical analysis.

However, substantial selling activity by large holders has complicated the technical outlook. A major wallet address sold a substantial amount of Ethereum in a concentrated period, according to blockchain data. Another dormant whale address transferred coins to an exchange after remaining inactive for years, a movement typically associated with selling intentions. Ethereum co-founder Vitalik Buterin also sold a notable amount over recent days, data showed.

BitMine Immersion Technologies moved counter to the broader trend, substantially increasing its Ethereum holdings to represent a notable share of circulating supply, according to company disclosures. The firm maintains a large staked position generating annualized yield and completed a major purchase last week. The company has publicly stated an acquisition target that would capture a meaningful share of total supply.

Traditional financial institutions showed opposite behavior. Ethereum exchange-traded funds posted consecutive weeks of net outflows, indicating capital exiting these regulated investment products, according to fund flow data.

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On-chain metrics presented mixed signals. New wallets received materially higher-than-normal inflows, whale inflows spiked well above average levels, and top profit-and-loss wallets added sizable amounts, blockchain analytics firms reported. The combination of ETF outflows and major whale selling has kept downward pressure on the price in the near term.

The cryptocurrency’s price trajectory depends on whether current support levels hold, analysts noted. A daily close below the key support level would invalidate the bullish divergence pattern and expose lower support zones. Technical analysts identified a downside scenario involving continued large holder selling, ongoing ETF outflows, and absent buying interest until a lower level triggers capitulation selling.

The alternative scenario requires the support level to hold, followed by a reclaim of recent consolidation highs, which would signal a reversal pattern and open movement toward the next technical resistance level, according to chart analysis.

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Crypto World

Bitcoin Taps $66k as Stock Divergence Hints at a BTC Price Rally

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Bitcoin Taps $66k as Stock Divergence Hints at a BTC Price Rally

Bitcoin (BTC) rallied toward $66,000 after Tuesday’s gains in the US stock market, as cryptocurrencies sought to halt their 2026 slump.  

Key takeaways:

  • Bitcoin rallied above $66,000 on Wednesday, recovering alongside US stocks.

  • Bitcoin Coinbase Premium Index flipped positive amid $258 million in ETF inflows.

  • While BTC’s correlation with stocks and gold is at its weakest since 2022, it historically signaled significant upside upon reversion.

BTC/USD hourly chart. Source: Cointelegraph/TradingView

BTC price recovers in tandem with US equities

Bitcoin’s recovery Wednesday aligns closely with similar rebounds in the US stock market, with AI and tech stocks leading the market higher.

Source: The Kobeissi Letter

The tech-focused Nasdaq led the recovery with 1.05% daily gains, while the S&P 500 rose 0.68%. The Dow locked in a 421-point gain, closing the trading day on Tuesday 0.86% higher.

Related: Bitcoin bounces to $66K as rumors swirl over Jane Street selling algorithm

Crypto-related stocks also saw moderate gains, with crypto exchange Coinbase (COIN) rising by 1.12% and Strategy (MSTR) gaining 0.73%.

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24-hour performance of US stocks. Source: Financial Visualizations

The swift recovery of US equity markets appears to have played a role in easing negative pressure on crypto investors looking to cut risk asset exposure. 

This is evidenced by the Bitcoin Coinbase Premium Index, a metric that tracks the price difference between BTC on Coinbase and Binance, which has flipped positive for the first time since Jan. 15.

This means “US buyers are stepping in,” said analyst Nic in a post on Wednesday, adding that the index needs to stay positive to ensure sustained buying pressure. 

Bitcoin’s Coinbase Premium Index. Source: CoinGlass

The return of demand in the US was also reflected by Bitcoin ETFs, which recorded $258 million in net inflows on Tuesday.

Bitcoin won’t stay disconnected forever: Analysis

Bitcoin, which is often viewed as a risk asset in the short term, has frequently moved in tandem with the stock market, particularly the S&P 500.

The past six months have seen a sustained period of this correlation breaking. The daily correlation coefficient index between BTC price and the US benchmark index, the S&P 500 index, is currently 0.32, and -0.45 with gold.

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Bitcoin vs. S&P 500’s and gold daily correlation coefficient. Source: Cointelegraph/TradingView

“Since late August, gold has surged +51%, the S&P 500 has gained +7%, and Bitcoin has fallen -43%,” onchain data provider Santiment said in a recent post on X.  

This marks the weakest correlation between Bitcoin and stocks since the FTX chaos in late 2022.

“Historically, when an asset that is usually correlated breaks away in this dramatic fashion, it typically does not stay disconnected forever,” Santiment said, adding:

“In the long term, this unusual separation actually argues for significant upside for Bitcoin and altcoins.”

Cryptocurrencies, Gold, Bitcoin Price, Markets, Stocks, Price Analysis, Market Analysis, S&P 500, Bitcoin ETF, ETF
Bitcoin correlation with stocks and gold. Source: Santiment

If Bitcoin returns to its historical pattern of tracking equities during economic expansions, “it may have significant room to catch up,” Santiment concluded.

This view was echoed by the founder and CIO of trading company QCP Capital, Darius Sit, who argued that the “Bitcoin vs. gold” debate is often misread as a price contest, when the “more important driver is liquidity and market structure.”

The divergence between stocks and BTC “reflects position unwinds and leverage-driven flows, not a failure of Bitcoin’s longer-term narrative,” Sit said, adding:

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“Bitcoin still behaves like a long-term inflation hedge and an increasingly legible form of collateral.”

As Cointelegraph reported, Bitcoin’s adoption by institutions, banks, merchants, public companies and nation-states surged in 2025, confirming it as a maturing asset class for investors.