Ethereum Supply Shock? BitMine Absorbs 319,000 ETH In A Week

BitMine Immersion has reportedly accumulated a staggering 319,000 ETH in just a single ￰0￱ massive purchase, worth over a billion dollars, underscores growing conviction in Ethereum’s long-term value among institutions and big players, tightening market ￰1￱ This Trigger An Ethereum Supply Crunch? In a move that highlights the growing institutional confidence in Ethereum, Paul Barron has mentioned on X that BitMine Immersion has just absorbed 319,000 ETH in a single week, which is equivalent to 0.26% of Ethereum’s total supply removed from ￰2￱ Reading: BitMine’s Ethereum Treasury Hits New Milestone With 2 Million ETH Holdings Barron extrapolates this acquisition velocity, calculating that at the same rate, BitMine could demand an additional 4.1 million ETH in the 13 weeks remaining in ￰3￱ demand would be hitting a market where the current liquid supply on exchanges is only around 11 million ￰4￱ concludes that if just three to four more institutions adopt the Bitmine playbook, the combined demand would cause the market to face a supply crisis that is more severe than in 2021.

However, a removal of 319,000 ETH and a staking lockup from the liquid market suggests that deflationary pressure is ￰5￱ to Barron, smart money is positioning ￰6￱ predicts that while retail investors will only begin to chase ETH at levels above $8,000, Ethereum could reach $15,000 by December, which is “mathematical inevitability” if this institutional FOMO continues to ￰7￱ Supply Locked In Staking Reaches Record Levels While a prominent figure is accumulating ETH every week, Ethereum is on the verge of a supply shock, despite appearing bearish on-chain two weeks ago. However, at the end of August, Bull Theory revealed that the on-chain data showed a spike in the validator exit queue to nearly 1 million ETH, the highest in ￰8￱ Reading: Institutional Flows Push Ethereum into Spotlight: Analysts Eye $6K to $12K Targets Ahead The development may signal fear and potential selling pressure, but the narrative has now flipped.

Presently, the validator entry queue has climbed back to 787,085 ETH in a 14-day wait to stake, indicating a strong return of confidence and growing demand to stake. Meanwhile, the validator exit queue has dropped sharply to 616,898 ETH in a 10-day wait, a clear sign that its previous peak is fading fast to nearly 1 million ￰9￱ shift shows that fewer validators are leaving the network, and the pressure from unstaking is diminishing ￰10￱ has over 1.05 million active validators, with 35.6 million ETH staked, which is equivalent to 29.4% of the total supply, and a steady APR of 2.89%. According to Bull Theory, this is exactly how a supply squeeze unfolds: it starts slowly at first, then all at once, as liquidity tightens and more ETH is locked ￰11￱ image from Pixabay, chart from ￰12￱