Crypto markets are currently facing a significant downturn, with Bitcoin experiencing a modest increase of 1.12%, bringing its price to $88,224. Ethereum is trading at around $2,967, while trading volumes across major altcoins have reached their lowest levels since 2025.
Despite the apparent stagnation in price movement, some institutional indicators suggest a different narrative. Notably, BitMine Immersion Technologies recently staked 342,560 ETH, valued at approximately $1 billion, marking a significant move in the Ethereum market. This staking action has resulted in Ethereum’s validator entry queue nearly doubling the exit queue, a phenomenon not seen in the past six months. Such a supply lock-up in a low-liquidity environment may set the stage for future price movements.
Adding to this bullish sentiment, BitMine has staked an additional $780 million worth of Ethereum, elevating its total staking to over $1 billion within just a few days. The company’s CEO, Jonathan Bates, expressed confidence in Ethereum’s long-term value proposition, indicating a strategic commitment to strengthening BitMine’s position as a pivotal validator in the network.
In addition to their active staking, BitMine is reportedly advancing plans for its “Made in America Validator Network,” which is expected to launch in the first quarter of 2026. This infrastructure initiative forms part of a broader strategy to bolster BitMine’s digital asset portfolio, which now exceeds 4.1 million ETH.
On a different front, the proposed “2026 Billionaire Tax Act” has raised alarm among investors and industry stakeholders in California. The legislation seeks to impose a 5% annual tax on net wealth exceeding $1 billion, specifically targeting unrealized gains in crypto assets. Critics, including notable figures such as Kraken co-founder Jesse Powell, warn that this could compel founders to liquidate positions to meet tax obligations, potentially triggering widespread selling pressure in the market.
The ramifications of such a tax could extend beyond billionaires, potentially prompting a larger exodus of crypto capital from California to more tax-friendly regions like the UAE or Florida. The difficulties in valuing volatile crypto assets for taxation purposes present administrative challenges that critics argue could hamper the growth and development of the U.S. crypto industry. As discussions about this bill continue, the potential for a “pre-emptive exodus” of crypto-native capital looms, which could significantly impact investments and innovation within the state as the 2026 tax year approaches.
