Ethereum Supply Shock? BitMine Gobbles Up 319,000 ETH In Just 7 Days
Supply crunch incoming? BitMine's massive ETH accumulation sparks market frenzy.
The whale move that's shaking crypto
BitMine didn't just dip its toes—it plunged headfirst into Ethereum, snapping up 319,000 tokens faster than Wall Street bankers order martinis. This isn't accumulation; it's a straight-up vacuuming operation that's leaving exchanges scrambling.
Why this changes everything
That much ETH vanishing from circulation doesn't just move markets—it rewrites the supply dynamics entirely. We're talking about institutional-grade conviction that makes traditional finance's 'strategic allocations' look like pocket change. Suddenly, those conservative portfolio managers who dismissed crypto seem about as relevant as fax machines.
The ripple effect you can't ignore
Liquidity tightens, volatility spikes, and every trader worth their salt starts recalculating positions. This isn't just another buy—it's a statement that echoes across trading floors from Coinbase to Binance. Meanwhile, traditional finance keeps debating whether crypto is 'legitimate' while actual players make actual moves.
One thing's certain: when institutions move this hard, retail either rides the wave or gets washed away. The only question left is who's next to join the feeding frenzy—and whether there'll be any ETH left to buy.
Could This Trigger An Ethereum Supply Crunch?
In a MOVE that highlights the growing institutional confidence in Ethereum, Paul Barron has mentioned on X that BitMine Immersion has just absorbed 319,000 ETH in a single week, which is equivalent to 0.26% of Ethereum’s total supply removed from circulation.
Barron extrapolates this acquisition velocity, calculating that at the same rate, BitMine could demand an additional 4.1 million ETH in the 13 weeks remaining in 2025. This demand WOULD be hitting a market where the current liquid supply on exchanges is only around 11 million ETH.
He concludes that if just three to four more institutions adopt the Bitmine playbook, the combined demand would cause the market to face a supply crisis that is more severe than in 2021. However, a removal of 319,000 ETH and a staking lockup from the liquid market suggests that deflationary pressure is accelerating.
According to Barron, smart money is positioning now. He predicts that while retail investors will only begin to chase ETH at levels above $8,000, ethereum could reach $15,000 by December, which is “mathematical inevitability” if this institutional FOMO continues to spread.
ETH Supply Locked In Staking Reaches Record Levels
While a prominent figure is accumulating ETH every week, Ethereum is on the verge of a supply shock, despite appearing bearish on-chain two weeks ago. However, at the end of August, Bull Theory revealed that the on-chain data showed a spike in the validator exit queue to nearly 1 million ETH, the highest in months.
The development may signal fear and potential selling pressure, but the narrative has now flipped. Presently, the validator entry queue has climbed back to 787,085 ETH in a 14-day wait to stake, indicating a strong return of confidence and growing demand to stake. Meanwhile, the validator exit queue has dropped sharply to 616,898 ETH in a 10-day wait, a clear sign that its previous peak is fading fast to nearly 1 million ETH. This shift shows that fewer validators are leaving the network, and the pressure from unstaking is diminishing fast.
Ethereum has over 1.05 million active validators, with 35.6 million ETH staked, which is equivalent to 29.4% of the total supply, and a steady APR of 2.89%. According to Bull Theory, this is exactly how a supply squeeze unfolds: it starts slowly at first, then all at once, as liquidity tightens and more ETH is locked away.
