According to Tom Lee, CEO of the Ethereum Treasury Company Bitmine, ETH has already bottomed out in the current downturn. Can we trust this?
Tom Lee believes ETH has already bottomed out
In recent weeks, Tom Lee, CEO of Bitmine, the largest Ethereum Treasury Company, has repeatedly expressed his optimism regarding ETH.
In an interview with Farokh Sarmad, he reiterated this optimism, even going so far as to suggest that ETH has already hit bottom:
Well, here’s my take, but we’re putting our money where our mouth is. Our money is where we’re talking about it. I’m convinced that Ethereum has already hit bottom. We’re buying it. We demonstrated that yesterday. Compared to two weeks ago, the amount of ETH we’re buying has more than doubled.
If Tom Lee is correct, this would mean that the low was $2,623 on November 21, just three months after the all-time high of $4,946 on August 24. Given past trends, this seems highly unlikely, as the market is currently in a phase of uncertainty and ETH is trading nearly 36% below its all-time high:
ETH price (daily data)
Whether to convince investors or to try to convince himself, Tom Lee was already explaining in late November that ETH could reach between $7,000 and $9,000 by next January. Although things can move very quickly in the ecosystem, we wonder what could drive a threefold increase in the asset’s value in such a short time, especially since the 2021 all-time high was only surpassed with very little conviction this summer.
In any case, this hasn’t stopped Bitmine from ramping up its purchases, and the company now holds over 3.86 million ETH, currently valued at $12.37 billion, making it the largest Ethereum Treasury Company.
Despite this, BMNR stock is suffering far more than ETH on the stock market, currently trading at $39—a drop of nearly 76% from its annual high in July. Meanwhile, the price of ETH stands at $3,200 at the time of writing, down 4% over the past 24 hours.
