Analyzing ETH bottom formation from the hexagram: The deep logic behind Bitmine consuming 40,000 coins in a single day

When Ethereum’s price drops below $2,200 and continues to retrace to $1.97K, the market is filled with despair. However, amidst this wave of panic, Bitmine has shown a completely different stance—buying over 60,000 ETH in a single week, with a single day swallowing up 40,000 ETH. The underlying signals behind this are far more complex than the surface-level price decline. As the Book of Changes (I Ching) states: observing images is not as good as understanding trends; watching prices is not as good as discerning positions. Price is just an image; the true determinant of victory or defeat is who stands where.

Hidden Hexagrams in the Decline: Why On-Chain Fundamentals Contradict Price

Currently, ETH presents an interesting state—weak on the surface but strong internally. On one hand, prices are falling and market sentiment is collapsing; on the other hand, on-chain fundamentals continue to strengthen.

Over 30% of Ethereum is staked, reaching a historic high. More importantly, the queue for unstaking is nearly cleared, indicating that a large amount of chips are actively choosing to remain staked rather than fleeing the circulating market. What does this mean? It means that truly foresighted capital is voting with their feet—they are not panicking and fleeing, but rather increasing their commitments.

From an I Ching perspective, this is called “outer weak but inner solid.” It’s not a sign of defeat but a sign of a reshuffling. The short-term correction in price is precisely part of a long-term structural adjustment. When low-quality chips are shaken out and high-quality chips are locked in, the market’s bottom structure is becoming more solid.

Hierarchy and Structure: Why Bitmine Dares to Increase Positions Amid Panic

Bitmine’s action of increasing holdings may seem aggressive, but there are solid foundations behind it.

First is the issue of hierarchy. Currently, Bitmine holds 3.52% of the total ETH supply, aiming for 5%. But what truly gives it the confidence to keep accumulating during a decline is not just this figure, but three major structural advantages:

Zero Debt Design: No reliance on borrowing, operating solely with its own funds, meaning no fear of liquidation risk. Even in volatile markets, it cannot be easily wiped out.

67% ETH Staking Yield: Approximately $1 million in daily cash flow provides Bitmine with a continuous supply of “ammunition.”

$586 Million Cash Reserves: This is a weapon of time. With enough cash on hand, patience is guaranteed.

The I Ching says “A proper position fears no震.” When your structure is robust enough, market declines are not risks but excellent opportunities to exchange chips. Bitmine isn’t buying just volume; it’s increasing its weight in the market hierarchy.

Market True Segmentation: Those with Hierarchy Are Increasing, Those Without Are Clearing Out

The same market tells two completely opposite stories.

Trend Research, during the same period, sharply reduced its holdings by 250,000 ETH and was forced to exit. This is not “bearish on Ethereum,” but a forced choice. High leverage structures mean “high position but weak foundation”—any disturbance can trigger a chain reaction. When the market begins to decline, high-leverage players have no choice but to cut losses and exit.

This is the most authentic picture of the current market: extreme differentiation. Institutions with proper structures are increasing positions; those without structural support are clearing out. It’s not a matter of direction but of hierarchy.

Those who are bearish may be forced out at a loss; those who are bearish may also be laying out at the bottom—the difference lies in structure.

From Speculation to Yield: ETH Is Completing a Hexagram Transition

The transformation from the “speculation hexagram” to the “yield hexagram” is quietly changing the underlying logic of the market.

ETH is shifting from “making money through price swings” to “earning through staking.” When an asset begins to reliably generate cash flow, its fundamental nature changes—transforming from a volatile asset into a cash flow asset. In I Ching terms, this is a shift from the “moving hexagram” to the “constant hexagram.”

Bitmine’s daily $1 million staking income does not depend on price fluctuations but stems from the network’s ecological distribution. What does this mean? Even if prices continue to fall, Bitmine’s cash flow will keep operating, and the on-chain fundamentals will continue to strengthen.

This is why foresighted institutions choose to increase positions during declines—they are not just betting on a rebound but investing in a long-term sustainable cash flow structure.

Hexagram Insights: Learn Structure, Not Just Position

For ordinary investors, this story offers only one key lesson:

Don’t learn from whales’ positions; learn from their structure.

In I Ching, what truly matters is never “buying at the lowest point,” but “standing in the right position and waiting for the right time.” Bitmine’s accumulation isn’t bottom-fishing; it’s establishing a position and waiting for the moment. Their language of hexagrams tells the market: in panic, exiting is just about positions; after turbulence, what remains is structure.

ETH’s current decline is more like the “震” (Zhen) hexagram before a change of hexagrams, not the final “坤” (Kun). Those who understand this are using action to upgrade from “speculators” to “structural holders.”