Bitmine analysts have revealed the true reason for the Ethereum (ETH) crash — "window dressing" ahead of the quarter.
Last week, Ethereum (ETH) lost 8% of its value, and this decline was not accidental. The analytical department of Bitmine, one of the largest institutional holders of the second-largest cryptocurrency by market capitalization, conducted its own investigation and came to an unequivocal conclusion: the root of the problem lies in the so-called "window dressing," which is actively practiced by large investment funds before the end of the quarter.
The essence of the phenomenon is simple and cynical. In anticipation of publishing quarterly reports, fund managers massively dispose of loss-making assets accumulated over the past three months. This is done not to improve real returns, but to show clients a more attractive and "clean" portfolio. According to Bitmine, it was this market factor that triggered the sell-off of ETH.
Numbers Don't Lie: Pressure on Ethereum is Growing
The decline of ETH fits into the overall negative market dynamics. Over the month, the price of the second cryptocurrency has fallen by almost 22%, while bitcoin (BTC) has lost 19%. Ethereum is preparing to end its third consecutive quarter with negative indicators. However, despite the pressure, Bitmine continues to increase its portfolio. Over the week, the company purchased another 27,084 ETH, bringing the total balance to 5,700,040 coins (about $9 billion). Bitmine's share of the total ETH supply (120.7 million) has already reached 4.7%, which is 94% of the target of 5%.
Whales Aren't Leaving: Institutions Are Buying the Dip
Notably, against the backdrop of panic among small speculators, large players are, on the contrary, becoming more active. The second-largest holder of Ethereum, the SharpLink fund, resumed purchases after an eight-month hiatus. According to blockchain analytics from Lookonchain, the fund acquired 39,196 ETH. SharpLink's average purchase price is about $3,609 per coin, and the fund's current unrealized loss is estimated at nearly $1.7 billion. Nevertheless, the resumption of purchases indicates a high level of institutional confidence in the asset's long-term prospects.
Expert Opinion. The "window dressing" phenomenon is a classic example of short-term market noise. Yes, it creates excessive price pressure in the final weeks of the quarter, but for long-term holders, it is more of an entry opportunity. The current price of ETH is significantly below the average entry point of giants like SharpLink and Bitmine. Once the quarterly reports are filed, the artificial pressure will disappear, and we will likely see a sharp rebound. Institutional buying at these levels is a very strong bullish signal that cannot be ignored.