BitMine Immersion has made waves in the cryptocurrency world by acquiring a massive 319,000 ETH in just one week. This significant purchase, valued at over a billion dollars, highlights the growing confidence in Ethereum’s long-term value among institutional investors and major players. The move also serves to tighten market liquidity, as a substantial portion of Ethereum’s total supply is now out of circulation.
The acquisition by BitMine Immersion has sparked speculation about a potential Ethereum supply crunch. Industry expert Paul Barron has pointed out that if BitMine continues to acquire ETH at the same rate, they could demand an additional 4.1 million ETH in the remaining 13 weeks of 2025. This demand comes at a time when the current liquid supply on exchanges is only around 11 million ETH, creating a potential imbalance in the market.
Barron suggests that if a few more institutions follow BitMine’s lead, the combined demand for ETH could lead to a supply crisis even more severe than what was seen in 2021. However, the removal of 319,000 ETH from circulation and the increasing number of ETH locked up in staking indicate that deflationary pressure is accelerating in the market.
While there may be concerns about a potential supply crunch, Ethereum’s supply locked in staking has reached record levels. Despite some bearish on-chain data a few weeks ago, recent reports show a spike in the validator exit queue to nearly 1 million ETH, the highest in months. However, there has been a shift in sentiment, with the validator entry queue climbing back to 787,085 ETH in a 14-day wait to stake, indicating renewed confidence and growing demand for staking.
Currently, Ethereum has over 1.05 million active validators, with 35.6 million ETH staked, equivalent to 29.4% of the total supply. This steady increase in staked ETH, coupled with a diminishing validator exit queue, suggests that the pressure from unstaking is decreasing. According to experts, this pattern is indicative of a supply squeeze, where liquidity tightens and more ETH is locked away, potentially leading to further price appreciation.
As institutional interest in Ethereum continues to grow, retail investors may soon follow suit. Paul Barron predicts that Ethereum could reach $15,000 by December, driven by institutional FOMO and increasing scarcity in the market. Overall, the current trends in Ethereum’s supply and demand dynamics point towards a potentially bullish outlook for the cryptocurrency in the coming months.