Tom Lee’s institutional accumulation strategy has a strict position-sizing rule: no single asset holding may exceed 5% of its total supply. Bitmine has been adding to its ETH holdings weekly since last June, but stopped buying once it hit that cap. It is currently sitting on an unrealized loss of $4.5 billion, with most of its purchases made near the highs of the previous bull market.
ETH is now at $2,552, down 5.5% over 24 hours—below Bitmine’s average cost basis. The supply cap means no additional buying will come in to support the price. Once the cost-basis zone is breached, it often turns into overhead selling pressure. The key to a rebound is whether ETH can reclaim that zone. If it can’t, the passively held tokens become a source of resistance. #ETH
ETH is now at $2,552, down 5.5% over 24 hours—below Bitmine’s average cost basis. The supply cap means no additional buying will come in to support the price. Once the cost-basis zone is breached, it often turns into overhead selling pressure. The key to a rebound is whether ETH can reclaim that zone. If it can’t, the passively held tokens become a source of resistance. #ETH