BitMine stock price has crashed in the past few months as the crypto winter has escalated. BMNR dropped to $16.10 on Monday, down by 90% from its highest point last year. So, will the stock rebound amid a surge in its unrealized losses?
BitMine Stock Has Plunged As Ethereum Weakness Has Persisted
According to Tom Lee, the case for investing in Ethereum is simple. ETH has a long track record of success, having moved from less than $10 a decade ago to nearly $5,000 last year.
Ethereum is also the leading layer-1 chain powering key areas such as real-world asset tokenization (RWA), stablecoins, non-fungible tokens (NFTs), and decentralized finance (DeFi).
Lee believes that some of these industries are in their infancy, meaning that Ethereum’s role will continue growing in the coming years. At the same time, he believes that Ethereum is a good passive income asset, thanks to its staking yield.
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While Ethereum has a large market share in these industries, its role has stagnated. For example, the total value locked (TVL) on its platform has continued to fall this year, with most of the losses occurring after the recent KelpDAO hack.
The supply of stablecoin on the network dropped by 3.9% in the last 30 days to $167 billion. On the positive side, the 30-day trading volume jumped 11% to $966 billion, while active addresses rose to 400k.
Ethereum’s role in the DEX ecosystem has dropped sharply in the past few months. All the dApps on the network processed over $34 billion in trading volume in the last 30 days. In contrast, Hyperliquid handled over $240 billion in the same period.
All these numbers explain why Ethereum is no longer making as much money as it used to a few months ago. Its network fees have tumbled to $46 million this quarter, from $102 million in the same period last year.
These numbers likely explain why Ethereum ETFs have shed millions of dollars in assets this year. They also explain why the ETH price has slipped, leading to over $10 billion in unrealized losses for the company.
BMNR Stock Price Technical Analysis
Technical analysis explains why the BitMine stock price has crashed over the past few months. It slipped to a low of $16.10 on Monday, well below its high last year.
The stock has dropped below the key support level of $17.75, its lowest point in February and March this year. It has also formed a break-and-retest pattern, confirming the bearish breakout.
BitMine has remained below the 50-day and 100-day Exponential Moving Averages (EMA). Therefore, the most likely scenario is that it will continue to fall in the coming weeks. If this happens, the next key level to watch will be at $15.
In the future, however, the BitMine share price is likely to bounce back as investors buy the dip.
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