Bitcoin Touches $79,500, Ethereum $2,500 as Bitmine Rally Continues

The move took effect last week and is viewed as a policy distinct from the Federal Reserve's quantitative easing. The Treasury aims to ease instability in the long-term bond market and secure liquidity.

Under the buyback structure, the US government sells short-term one-year Treasury bonds to buy back long-term 30-year bonds. This secures liquidity and uses the funds to repurchase long-term bonds, stabilizing that market. The process raises long-term bond prices and lowers market yields, which positively affects risk assets such as stocks and cryptocurrencies.

Analysts say stablecoins are highly useful in creating demand for short-term Treasury bonds. Alongside these policy changes, interest in stablecoins has grown sharply, which could be a positive signal for the crypto ecosystem as a whole. The impact of stablecoins on the Treasury market is likely to be a key factor shaping the direction of the crypto market.

US long-term Treasury yields remain elevated. The 30-year yield is currently around 5.2%, and the 10-year yield has risen to about 4.7%. This suggests market instability and inflation pressure persist, and it remains to be seen how the bond buyback policy will affect yield stabilization.

Ethereum outpaced Bitcoin by a wider margin, suggesting that Ethereum-specific fundamentals or market sentiment were stronger than those affecting Bitcoin.

To judge whether this rally is a genuine trend reversal, investors should look beyond a few days of price gains and check whether the advance can be sustained and whether trading volume is recovering. If prices consolidate at high levels while volume rises, that could signal the end of the crypto winter. If the gains are quickly given back, the move is likely only a short-term rebound.

Judging short-term price prediction to be impossible, the host said they are currently executing a dollar-cost averaging strategy, a long-term approach of steady investing.

Bitmine is a company holding large amounts of Ethereum, and its stock tends to move like a leveraged bet on Ethereum. However, it is not a high-multiple inverse product like ETHU that precisely tracks a multiple of Ethereum's price. As of August 24, Bitmine rose 7–8% when Ethereum gained 1%, but this ratio does not stay fixed. As a standalone company, Bitmine also pursues other investments besides Ethereum, and while Ethereum price swings affect the stock, the impact can vary depending on whether the mNAV (market-to-net-asset-value) premium expands.

Based on the August 23 disclosure date, the valuation was set at $2,440 per coin. This amounts to 4.8% of Ethereum's total supply, or 97% of Bitmine's 5% target. Continued Ethereum purchases reflect the company's growth strategy.

With 4.8% currently held, completing the remaining purchases is expected to have a meaningful impact on the market.

This reverses a sharp drop from $104 million the week before last. The increase is presumed to stem from issuing common or preferred stock (BMNP) through an at-the-market (ATM) program. The added cash is likely to be used for further Ethereum purchases or other investment activities.

This is an estimate that accounts for stock issuance through the ATM program and share buybacks, and it may differ from the actual figure.

First, fundamentals across the crypto market are broadly strengthening. Second, tokenization of assets is expanding on Wall Street. Third, the potential use of agentic AI on blockchains continues to be discussed and is drawing attention. Fourth, the White House is pursuing policies supportive of the crypto industry. Finally, improved risk-asset sentiment following the US Treasury's long-term bond purchase measures is also playing an important role.

This cumulative buyback since July shows the company actively buying shares, apparently judging them to be undervalued. Share buybacks can raise shareholder value and reduce shares outstanding, which can have a positive effect on the stock price.

This policy is seen as protecting shareholder value and preventing excessive dilution. However, analysts may differ on the exact premium figure.

Ethereum in particular has been falling consistently. As less coin circulates on the market, scarcity rises, which can be a positive factor for crypto prices, including Bitmine's stock price.

Three main factors are cited for the recent crypto rally. First, the SEC and CFTC have proposed rules to help crypto companies raise capital and operate in the US. Second, the US Treasury has taken steps to support the long-term bond market by expanding its buyback size from $2 billion to $4 billion. Third, former President Donald Trump has taken positive steps, including meeting crypto industry figures to discuss ways to pass the CLARITY Act.

Investors in Bitmine should focus on three key indicators going forward. First, check whether Ethereum's price and trading volume can sustain this rally. Second, verify whether Bitmine's stock regains a premium above its net asset value. Third, examine closely whether the company's share buybacks and additional Ethereum purchases actually increase Ethereum holdings per share and raise investment value. These indicators will be important measures of whether a Bitmine investment succeeds.