Bitmine Immersion Technologies Inc. (NYSE:BMNR) stock declined on Friday as Ethereum (CRYPTO: ETH) extended losses during afternoon trading.
Ethereum Drops 6% Despite Lee’s Warning
Ethereum plunged 6% on Friday to $2,743.53, while Bitcoin (CRYPTO: BTC) traded at $83,195.06. Fundstrat’s Tom Lee urged investors not to abandon Ethereum out of fear of missing out (FOMO), responding to a post from Bitmine that highlighted gold and silver’s year-to-date surge of 18% and 52%, respectively.
“Own what works. But don’t let FOMO make you abandon good ideas,” Lee stated, according to a Benzinga report on Thursday.
Metals Rally Creates Capital Rotation Challenge
Bitmine warned that gold and silver’s explosive moves are creating a “vortex” that’s sucking investor attention away from structurally strong themes like AI and crypto, according to the company’s statement. Lee explained the metals rally is diverting capital from crypto because traders are tying up funds in gold and silver momentum trades, with gold crossing $5,000 and silver hitting $110.
Lee noted the October crash “crippled many of the key players in industry, some exchanges and market makers,” leaving crypto without the leverage that typically amplifies rallies.
Technical Analysis
Currently, BitMine is trading 13.6% below its 20-day simple moving average (SMA) and 36% below its 100-day SMA, indicating a bearish trend. Shares have increased 298.90% over the past 12 months and are currently positioned closer to their 52-week lows than highs, reflecting a significant pullback from earlier highs.
The RSI is at 39.48, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting the uncertainty surrounding the stock’s performance.
BMNR Price Action: BitMine Immersion shares were down 4.02% at $25.62 at the time of publication on Friday, according to Benzinga Pro data.
Photo by PJ McDonnell via Shutterstock
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