Tom Lee Claims ‘Bots’ To Blame For Ethereum Price Fall as BitMine Buys More ETH Under $3,000

Key Takeaways

• Tom Lee attributed Ethereum’s late-December terms weakness to automated trading enactment and year-end taxation losses.

• Despite the downturn, BitMine continued accumulating Ethereum, adding 44,463 ETH.

• Analysts pass Ethereum remains susceptible to further downside.

BitMine’s Tom Lee said “bots” and year-end tax-related selling were driving Ethereum’s caller terms weakness, adjacent arsenic the steadfast added different 44,463 ETH tokens.

In a station connected X, Lee said marketplace conditions successful the last days of December are typically distorted arsenic organization investors measurement distant for the holidays, arsenic Ethereum continues to commercialized beneath $3,000.

Despite the terms slump, BitMine said it continued to accumulate Ethereum into the extremity of the year.

The institution said successful a connection that it added 44,463 ETH implicit the past week, taking vantage of year-end selling pressure.

As of Dec. 28, BitMine held astir 4.11 cardinal ETH valued astatine $2,948 per token, representing astir 3.4% of Ethereum’s circulating supply.

“Market enactment tends to dilatory arsenic we participate the last vacation weeks of a calendar year,” Lee said.

Adding: “Year-end tax-loss related selling is pushing down crypto and crypto equity prices, and this effect tends to beryllium the top from Dec. 26 to Dec. 30, truthful we are navigating markets with this successful mind.”

BitMine said its full crypto holdings, cash, and strategical investments present magnitude to $13.2 billion, making it the largest Ethereum treasury successful the world.

In a station promoting the latest buy, Lee said the late-December pullback was accordant with seasonal trading patterns.

“Typically, successful these past vacation trading days, galore organization investors person stepped distant from markets,” Lee said.

That dynamic, helium said, leaves markets much heavy influenced by automated trading systems and year-end tax-loss selling.

“As a result, trading is dominated by bots and different automated strategies, on with tax-loss related selling.

Ethereum was trading beneath $2,971 connected Wednesday, up astir 5% successful the past 30 days.

However, analysts accidental near-term risks stay skewed to the downside.

Victor Olanrewaju, an expert astatine CCN, said Ethereum remains susceptible to declines, pointing to rising speech reserves arsenic a cardinal concern.

“Despite the uncertainty surrounding Bitcoin’s caller on-chain movements, Ethereum’s terms inactive appears exposed to further downside risk,” Olanrewaju said.