Trend Research’s Ethereum Exit Results in Nearly $750 Million Losses, but Did It Sell at the Bottom?

Trend Research, an investment firm led by Jack Yi, founder of Liquid Capital, has sold its entire Ethereum ($ETH) position, reportedly locking in losses of nearly $750 million.

The large-scale sell-off comes as Ethereum continues its broader downturn, with the altcoin down more than 30% in the past month. The price performance has reignited debate over whether $ETH is approaching a market bottom.

Trend Research Sells Ethereum Amid Market Volatility

BeInCrypto recently reported that Trend Research began transferring Ethereum to Binance at the beginning of the month. On-chain analytics platform Lookonchain confirmed that the firm completed the sell-off yesterday.

In total, Trend Research moved 651,757 $ETH, worth approximately $1.34 billion, to Binance at an average price of $2,055. The transactions reduced the firm’s $ETH holdings to just 0.0344 $ETH, valued at around $72.

Data from Arkham Intelligence corroborates the near-complete exit, showing residual balances of roughly $10,000 in USDC and minor amounts of other tokens.

“The total loss is ~$747 million,” Lookonchain wrote.

The exit followed a leveraged strategy built on the decentralized finance (DeFi) lending protocol Aave. An analyst explained that Trend Research initially purchased $ETH on centralized exchanges and deposited it as collateral on Aave.

The firm then borrowed stablecoins against the collateral and repeatedly reinvested the borrowed funds into additional $ETH purchases, creating a recursive leveraged position that significantly increased both exposure and liquidation risk.

As $ETH’s price continued to decline, the position moved closer to the liquidation threshold. Rather than risk forced liquidation, Trend Research chose to unwind the entire position voluntarily.

While Trend Research pivoted to selling, BitMine has taken the opposite approach. Despite mounting unrealized losses, the firm has continued to increase its exposure, recently purchasing $42 million worth of Ethereum.

What an Ethereum Market Bottom Could Mean for Bitmine and Trend Research

The opposing strategies come amid a period of heightened market volatility for Ethereum. BeInCrypto Markets data shows that the second-largest cryptocurrency has declined 32.4% over the past month.

On February 5, $ETH also slipped below $2,000 before recovering. At press time, Ethereum was trading at $ 2,094.16, up around 0.98% over the past 24 hours.

$ETH) Price Performance”>

Ethereum ($ETH) Price Performance. Source: BeInCrypto Markets

Amid the downturn, some analysts have suggested that Ethereum may be approaching a market bottom. One analyst described Trend Research’s exit as the “largest capitulation signal.”

“Such forced exits often happen near major lows,” Axel stated.

Joao Wedson, founder of Alphactal, also noted that Ethereum’s price bottom is likely to occur months before Bitcoin’s, citing the faster liquidity cycle typically observed in altcoins.

According to Wedson, some chart indicators suggest that Q2 2026 could mark a potential price bottom for $ETH.

“Some charts already indicate that Q2 2026 could mark a potential price bottom for $ETH. Capitulation has arrived, and realized losses are set to increase sharply,” Wedson added.

While no bottom has been confirmed yet, the possibility could carry broader implications for institutional sentiment, particularly as some firms choose to de-risk while others continue to accumulate amid ongoing market weakness.

If Ethereum is indeed approaching a market bottom, BitMine’s continued accumulation could prove well-timed, positioning the firm to benefit from a future recovery.

However, if downside pressure persists, Trend Research’s decision to fully unwind its position may ultimately be viewed as a prudent move to limit the risks associated with leveraged strategies.

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