Bitcoin briefly broke through $96,500 this morning, and Ethereum reached $3,380. BitMine earlier staked an additional 92,160 ETH, bringing the total staked amount to 1.436 million ETH.
(Background: US December core CPI slightly below expectations! Gold and silver both hit new highs, Bitcoin broke through $92,000, and Ethereum surpassed $3100https://www.blocktempo.com/u-s-december-core-cpi-unexpectedly-below-expectations/)
(Additional context: FOMC minutes: Divergences remain, but “most” officials advocate continuing rate cuts)

Table of Contents

• BitMine Staking Again
• Unrealized Loss Stress Test
• Slight Decline in Fed Rate Cut Expectations

This morning (14th), Bitcoin surged rapidly after 6 a.m., reaching a high of $96,543, the highest in nearly two months. It fell back to around $95,000 before press time. After a prolonged consolidation, is this truly a breakout or just another false move? Further observation is needed.

BTC 1-hour K-line

Ethereum also moved in tandem with Bitcoin, reaching a high of $3,380 at the same time. Before press time, it was trading at $3,328.

ETH 1-hour K-line

BitMine Staking Again

Just a few hours ago, on-chain data showed that Ethereum (ETH) largest reserve company, BitMine, staked another 92,160 ETH (about $300 million), locking it into staking contracts, bringing the total staked to 1.436 million ETH, about 34% of its total holdings.

Based on the current approximate Ethereum staking annual percentage rate (CESR) of 2.81%, the annualized yield could reach hundreds of millions of dollars, turning idle crypto assets into income-generating positions.

Unrealized Loss Stress Test

However, high leverage still poses significant cost pressures. BitMine’s average holding price is as high as $3,862 per ETH, which has already resulted in tens of billions of dollars in paper losses compared to the current price. Nonetheless, BitMine continues to add positions at the lows, betting on a long-term rebound.

The company plans to hold a shareholder meeting on January 15 to discuss a plan to further increase ETH holdings through a share issuance. If shareholder support is obtained smoothly, the scale of staking and market influence could expand again.

Currently, BitMine is one of the largest single holders of Ethereum and an important market sentiment indicator. If subsequent staking brings stable cash flow and ETH prices rebound, its unrealized losses may be reduced; conversely, if prices continue to be pressured, whether the company can sustain through cash reserves and staking income will be a key focus.

Fed Rate Cut Expectations Slightly Decline

On the other hand, after the US CPI data was released last night, according to the latest CME FedWatch Tool data, the market is almost certain that the Fed will hold steady this month, maintaining interest rates in the 3.50%-3.75% range; the probability of rate cuts resuming in March and April has slightly decreased, at 26.1% and 33.8%, respectively.