Ethereum News Today: Institutions Buy as Long-Term Holders Sell, Deepening Crypto's Confidence Crisis

Institutions are quietly accumulating Bitcoin and Ethereum despite a broader market slump, with major players like Tom Lee's BitMine making large-scale purchases even as on-chain activity and ETF flows signal waning institutional confidence. BitMine, a high-profile institutional buyer, recently acquired 9,176 ETH ($29.14 million) from Galaxy Digital's over-the-counter desk, bringing its total Ethereum holdings to 19,500 ETH this month, according to on-chain analytics firm Lookonchain.

This move positions BitMine as one of the most active institutional buyers in November, even as Ethereum hovers near $3,100 and the broader crypto market grapples with renewed volatility.

The divergence among whale activity underscores the market's fragility. While BitMine and other large players continue to accumulate, long-term holders are increasingly selling at breakeven levels. A wallet linked to a long-term ETH holder, 0x0c19, recently offloaded 2,404 ETH ($7.7 million) after holding the tokens since August 2021, signaling fading confidence. Meanwhile, a super-whale identified as 66kETHBorrow added 16,937 ETH ($53.9 million) in a single day, pushing their total holdings to 422,175 ETH ($1.34 billion), despite carrying $126 million in unrealized losses. This contrasting behavior highlights a split in market sentiment between panic sellers and high-conviction buyers.

Retail and institutional demand for crypto assets, however, remains subdued. U.S.-listed Bitcoin spot ETFs recorded $870 million in outflows on Thursday-the second-largest single-day withdrawal since their launch-according to SoSoValue. Ether ETFs also faced $259.7 million in outflows, their largest since October. These trends align with broader market weakness, as Bitcoin fell below $100,000 for the first time in weeks and Ethereum dropped to $3,150. Over $1.1 billion in leveraged positions were liquidated in the past 24 hours, per CoinGlass data, reflecting growing risk aversion.

The selloff has also impacted altcoins. Ripple (XRP) and Solana (SOL) both fell more than 2%, while Grayscale's Bitcoin Trust (GBTC) and BlackRock's IBIT led outflows among BTC ETFs. Analysts at 10X Research attribute the bearish phase to weak ETF inflows, sustained selling by long-term holders, and muted retail participation. Despite this, some traders are betting on a rebound. The Machi brothers, known for their leveraged Ethereum positions, added margin to their longs on Hyperliquid to avoid liquidation, with both maintaining exposure totaling $39.45 million in ETH.

The market's next major catalyst could come in December with Ethereum's Fusaka upgrade. Analysts point to the Pectra upgrade's 50% price surge as a potential precedent, suggesting renewed volatility if large buyers like BitMine can shift sentiment. For now, however, the path of least resistance appears downward, with Bitcoin trading near a six-month low and Ethereum struggling to break out of a consolidation pattern.