Tom Lee Says Bitmine Will Stop Purchasing Ether Tokens

WHY IT MATTERS

In any market, prices are influenced by the balance between buyers and sellers. When a company regularly buys a cryptocurrency like Ether, it acts as a steady source of demand, somewhat like a store that always orders a certain product from a supplier. If that store stops ordering, the supplier loses a reliable customer. In this case, Bitmine has reportedly been a consistent buyer of Ether (ETH), the cryptocurrency that powers the Ethereum blockchain. The announcement that it will stop buying means one source of regular demand is going away. For beginners, this is a useful example of how individual participants in the crypto market, whether companies or large investors, can influence the dynamics of supply and demand.