10x Research: Ethereum is at a critical turning point; investors need to carefully assess whether it is a cyclical bottom or structural damage.

PANews reported on February 23 that crypto research firm 10x Research published an article on its X platform stating that Ethereum treasury company Bitmine is currently suffering approximately $8.8 billion in paper losses, exceeding the approximately $8 billion in losses suffered by customers at the beginning of the FTX crash. The company's significant increase in ETH holdings amid weakening demand and ETH prices approaching April 2021 levels has further exacerbated market controversy. This comparison highlights the potentially huge divergence in capital allocation outcomes and how timing and governance decisions ultimately determine the allocation of long-term value.

Currently, Ethereum is at a critical juncture, facing a dual test of valuation and fundamentals. The market needs to determine whether its current downturn is a cyclical bottom or a sign of deeper structural damage. Ethereum's current trading price is approaching a key valuation and cost range, and its core value proposition is undergoing a structural test. Investors need to carefully assess whether Ethereum is in a cyclical trough or entering a deeper phase of structural damage.