According to Tom Lee, CEO of 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 about ETH.
In an interview with Farokh Sarmad, he reiterated this optimism, even going so far as to suggest that ETH has already bottomed out:
Well, here’s my opinion, but we’re putting our money where our mouth is. Our money is where we say it is. I am convinced that Ethereum has already bottomed out. We are buying it. We demonstrated that yesterday. Compared to two weeks ago, the amount of ETH we are buying has more than doubled.
If Tom Lee is right, that would mean the low point was $2,623 on November 21, just three months after the all-time high of $4,946 on August 24. Given past experience, this seems highly unlikely, as the market is going through a period of uncertainty and ETH is currently trading down nearly 36% from its ATH:
Whether to convince investors or to try to convince himself, Tom Lee explained at the end of 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 motivate a threefold increase in the asset’s value in such a short time, even though the 2021 ATH was only exceeded with very little conviction this summer.
In any case, this has not prevented Bitmine from increasing its purchases, and the company now holds more than 3.86 million ETH, currently valued at $12.37 billion, making it the largest Ethereum Treasury Company.
Despite this, BMNR stock is suffering much more than ETH on the stock market, currently trading at $39, down nearly 76% from its annual high in July. For its part, ETH is trading at $3,200 at the time of writing, down 4% over the last 24 hours.
