Key Highlights:
- Ethereum may be facing short-term selling pressure from broader market losses, preparations for Anthropic’s IPO and funds linked to the Binance hack.
- BitMine holds approximately 6.06 million to 6.07 million ETH, representing about 4.9% to 4.97% of total ETH supply.
- BitMine is approaching its self-imposed 5% Ethereum ownership cap and plans to resume share buybacks while maintaining a long-term bullish outlook.
Why Ethereum Is Facing Short-Term Selling Pressure
Ethereum is being used as a source of liquidity as investors sell assets to cover losses elsewhere, according to Lee. Because cryptocurrency markets operate around the clock and transactions settle quickly, crypto can be one of the easiest assets to sell when investors need cash. That dynamic can turn Ethereum into an “ATM for losses incurred somewhere else,” adding pressure even when the underlying market outlook has not fundamentally changed.
Lee identifies three main forces behind the current liquidity drain. The first is broader market stress, which can prompt investors to raise cash across their portfolios. The second is Anthropic’s planned initial public offering, scheduled for November 19, 2026, according to the research findings. Lee suggests some investors may be freeing up capital ahead of potential retail allocations in the AI company’s IPO.
Anthropic IPO and Binance Hack Add to Market Liquidity Concerns
The third factor is the Binance hack, which the research findings place around late October 2026. Approximately $6.3 billion in funds were reportedly restored or made available. Lee considers the movement of those returned funds another factor that could contribute to selling pressure in the crypto market.
Lee describes the combined impact as a short-term “liquidity squeeze” that is affecting retail investors most heavily. He points specifically to the United States, South Korea and Taiwan as the markets experiencing the greatest pressure.
BitMine Continues Building Its Ethereum Treasury
While discussing the market pressures, Lee’s company, BitMine, has continued purchasing Ethereum. The firm now holds approximately 6.06 million to 6.07 million ETH, equivalent to roughly 4.9% to 4.97% of the total ETH supply.
That position places BitMine close to its self-imposed limit of 5% of the Ethereum supply. With the company nearing that ceiling, BitMine is moving to resume share buybacks rather than continuing to expand its ETH holdings at the same pace.
BitMine began its Ethereum accumulation strategy in mid-2025. The strategy has been funded mainly through equity issuance, while staking rewards have provided an additional increase in the company’s ETH holdings.
Lee Maintains Long-Term Bullish Ethereum Outlook
Despite the immediate selling pressure, Lee remains bullish on Ethereum over the long term. He describes the current market structure as a “coiled spring”—a market compressed by temporary liquidity forces that could move higher if its underlying fundamentals remain intact.
Lee also argues that crypto assets have demonstrated greater resilience than AI stocks during the recent turbulence. His broader investment thesis is tied to what he calls a “supercycle” powered by tokenization and artificial intelligence.
Tokenization involves placing real-world assets, such as stocks or bonds, onto blockchains so they can be traded and settled digitally. Lee views the continued development of tokenization and AI as longer-term forces that could support the crypto market beyond the current liquidity constraints.
What Investors Should Watch Next
Several of the factors affecting liquidity have identifiable timelines. Anthropic’s IPO is scheduled for November 19, 2026, so any cash-raising connected to retail participation could ease after the listing and allocation process is completed.
The reported $6.3 billion in returned Binance hack funds remains another important variable. The market impact will depend on how much of that money actually moves through crypto markets and how quickly it does so. Those flows could determine whether the selling pressure fades or continues.
BitMine’s actions also provide a market signal. The company is approaching its 5% ETH ownership cap and shifting toward share buybacks. As a result, one of the more persistent corporate buyers of ETH may be preparing to reduce its direct accumulation of Ethereum.
Why This Matters
The situation illustrates how cryptocurrency prices can be affected by liquidity needs that originate outside crypto itself. Portfolio losses, demand for IPO allocations and the movement of recovered funds can all create selling pressure, even when long-term views on Ethereum remain positive.
BitMine’s position is particularly significant because the company holds a large ETH treasury and its chairman, Lee, remains publicly bullish on Ethereum. The firm’s approach—continuing accumulation until it nears a 5% supply limit, then resuming buybacks—could offer investors a closely watched indication of how corporate crypto buyers are responding to valuation and liquidity conditions.
Frequently Asked Questions
Why is Ethereum facing selling pressure?
According to Lee, investors may be selling crypto to cover losses elsewhere, raise cash ahead of Anthropic’s IPO and account for funds connected to the Binance hack being restored or made available.
How much Ethereum does BitMine hold?
BitMine holds approximately 6.06 million to 6.07 million ETH, representing about 4.9% to 4.97% of the total ETH supply.
What is BitMine expected to do next?
As BitMine approaches its self-imposed 5% ownership cap for ETH, the company is moving to resume share buybacks while continuing to monitor the market.
