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BitMEX co-founder Arthur Hayes has made a notable return to Ethereum, repurchasing the cryptocurrency at a higher price point just a week after a significant sale. Hayes, known for his bold market calls, announced his renewed investment with a "pinky swear" that he will refrain from taking profits in the future.
Hayes Reverses Course on Ethereum Holdings
Last week, Hayes offloaded approximately 2,373 Ether (ETH), valued at around $8.32 million when ETH was trading near $3,507. This strategic sale aimed to lock in profits ahead of a potential market downturn. However, in a swift reversal, Hayes moved $10.5 million in USDC to acquire ETH at prices exceeding $4,150, a notable increase from his previous exit point.
He humorously declared on X, "Had to buy it all back, do you forgive me @fundstrat? I pinky swear, I’ll never take profit again." This statement was directed at Tom Lee, co-founder and head of research at FS Insight by Fundstrat.
Previous Market Warnings and Anticipated Drop
Hayes, who also serves as the chief investment officer of Maelstrom Fund, had previously issued warnings about potential macroeconomic pressures impacting the crypto market. He suggested that Bitcoin (BTC) could retreat towards $100,000. Citing concerns over renewed tariff fears following a weaker-than-expected July Non-Farm Payrolls report, Hayes indicated that sluggish credit growth in major economies might depress nominal GDP, potentially pushing Bitcoin and Ether lower.
In anticipation of this predicted downturn, Hayes had divested over $13 million in crypto assets. This included the aforementioned $8.32 million in ETH, $4.62 million in Ethena (ENA), and $414,700 in Pepe (PEPE).
Institutional Accumulation and Ether's Rally
This development occurs amidst a broader trend of institutional accumulation of Ether. Since July 10, over 1.035 million ETH, worth approximately $4.17 billion, has been acquired by various unknown whales and institutions through exchanges and institutional trading platforms. The average acquisition price for these holdings is estimated to be around $3,546.
The surge in buying activity aligns with Ethereum's recent strong price performance, which saw the token climb from $2,600 to $4,000 within the month, marking a 45% increase. Data suggests that a significant portion of these accumulated ETH holdings are likely held by institutions or publicly traded U.S. companies building their ETH reserves.
Sources
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Arthur Hayes buys ETH back at higher prices, pinky swears to never sell, mx.advfn.com.
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Arthur Hayes Buys Back ETH Higher, ‘Pinky Swears’ to Never Take Profit Again, Cointelegraph.
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