Matrixport: ETH Faces Increased Short-term Risk as Bitmine Buying Subsides and New Capital Fails to Enter

ChainCatcher news, Matrixport released a chart stating that two weeks ago we pointed out that the phased risks for Ethereum were accumulating: throughout the summer, incremental buying mainly came from Bitmine, whose sustained buying power largely supported the price and market sentiment. As Bitmine's buying exited, Ethereum-related ETFs had previously accumulated a net inflow of about 10 billions USD, and related long positions were already at relatively high levels. In the absence of new capital to take over, the pressure for price correction has significantly increased.

So far this year, Ethereum has cumulatively retraced by about 10%, and since we first warned of the risks, the decline has approached 20%. The process of long position deleveraging has basically matched our previous judgment. This trend is one of the notable negative developments in this year's crypto market, but it also once again confirms an important fact: insisting on data-driven decisions is the only way to gradually build real advantages in investment and trading.