Ethereum News Today: BitMine Seizes Market Downturn to Buy 2.9% of Ethereum Supply

Bitcoin fell below $103,000 on November 12 amid a wave of long liquidations on Binance, with over $120 million in leveraged positions wiped out in a single hour, according to XWIN Research Japan. The selloff, driven by cascading unwinds of overextended positions, underscored the fragility of leveraged trading in crypto markets, even as the U.S. government shutdown resolution failed to spark meaningful buying interest.

The liquidation surge was concentrated on Binance, where long positions accounted for the majority of losses. Data from Coinglass showed that Bitcoin liquidations totaled $115.98 million in the 24 hours through November 12, with short traders-those betting on further declines-bearing the brunt at $106.75 million. Long traders, who had anticipated a continuation of the recent downtrend, lost $9.22 million as prices rebounded unexpectedly. The largest single liquidation, a $18.96 million bet on Hyperliquid, highlighted the magnitude of forced selling.

The broader market saw $341.85 million in liquidations across major assets, with Ethereum contributing $92.01 million in losses according to data. Short sellers on ETH also faced heavy losses of $76.02 million, while longs lost $15.99 million. The selloff coincided with a sharp drop in Bitcoin ETF inflows and a strengthening U.S. dollar, which exacerbated volatility by reducing demand for risk assets according to XWIN Research Japan.

Amid the turmoil, institutional players like BitMine Technologies capitalized on the dip. The firm added 202,037 ETH ($828 million at current prices) to its treasury, pushing its holdings past 3.5 million tokens-2.9% of the total supply-and bringing it closer to its goal of acquiring 5% of Ethereum according to Coindesk and Morningstar. BitMine's chairman, Thomas Lee, framed the buying as a strategic move to exploit "substantial discounts to fundamentals" during periods of market deleveraging.

Macro factors further complicated the outlook. SoftBank's sale of a portion of its Nvidia stake and uncertainty ahead of the U.S. government shutdown vote fueled a risk-off sentiment, with over $362 million in liquidations occurring within four hours as Ethereum slipped below $3,400 according to CoinEdition. Analysts noted that Bitcoin's decline below $103,000 and Ethereum's drop below its 20-day moving average signaled short-term bearish momentum, though technical indicators suggested potential for a rebound if key support levels hold according to CoinEdition.

Despite the volatility, some traders doubled down on bearish bets. Pseudonymous trader James Wynn, known for aggressive short positions, deployed 30% of his stablecoin reserves into leveraged shorts, targeting a Bitcoin drop below $92,000. His 40x leveraged $275,000 short position faces liquidation if prices recover above $6,856, illustrating the high-stakes nature of leveraged trading.

XWIN Research Japan analysts suggested the selloff could act as a "reset" for overextended positions, potentially paving the way for a more balanced market once leverage ratios normalize according to XWIN Research Japan. However, with Bitcoin ETF inflows remaining weak and macroeconomic headwinds persisting, the path to recovery remains uncertain.