Large institutional investors are taking advantage of the recent dip in Ethereum's price to expand their holdings, signaling a focus on long-term exposure rather than short-term gains.
This activity indicates that institutions are preparing themselves for long-term exposure rather than seeking short-term gains.
Ethereum sentiment outperforms Bitcoin thanks to accumulation.
Blockchain analysis from Lookonchain reveals that an anonymous entity created three new wallets last week. The company also withdrew 92,899 Ethereum from the Kraken platform, valued at nearly $412 million.
Market analysts often interpret these withdrawals as a bullish signal, indicating that investors are moving coins to self-custody following a long-term holding strategy. Meanwhile, Donald Trump's DeFi company, World Liberty, joined the buying wave.
On-chain data shows that the company invested $8.6 million in USDC to purchase 1,911 Ethereum at an average price of $4,500 per Ethereum. At the same time, the company allocated another $10 million to buy 84.5 wrapped Bitcoin (WBTC) at a price of $118,343 per coin.
Additionally, BitMine, focused on Ethereum, achieved the largest acquisition during this period. Lookonchain reported that the company added 106,485 Ethereum to its balance sheet at a cost of $470 million.
This brings BitMine’s Ethereum balance to 1.17 million Ethereum, valued at approximately $5.3 billion. The company led by Tom Lee is the largest institutional holder of Ethereum reserves.
These institutional moves come in the wake of the recent correction that Ethereum experienced after weeks of bullish momentum that nearly took Ethereum to its all-time highs.
Market analysts point out that the timing and volume of these institutional purchases indicate a calculated accumulation strategy rather than speculative trading.
It is worth noting that institutional interest is driven by increased exposure to ETFs and the emergence of treasury companies. These entities have collectively amassed over 10 million Ethereum, equivalent to about $40 billion, in digital assets.
Accordingly, the blockchain analytics platform Santiment indicates that Ethereum currently has a modest short-term advantage over Bitcoin in market sentiment.
Sentiment analysis shows that Bitcoin spikes often create a buzz on social media platforms. In contrast, Ethereum's stable performance over the past three months has attracted calculated and steady accumulation by whales, rather than a general frenzy.
According to the company, this disciplined approach indicates that institutions are positioning themselves for sustainable growth. It also reinforces Ethereum's role as a leading force in the digital asset market over the next decade.
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