Recent data shows that Bitcoin (BTC) supply And Ethereum (ETH) on exchanges decreased significantly. This means The largest crypto codes In terms of market cap it could be well poised for big moves to the upside, with an impending supply squeeze.
The supply of Bitcoin and Ethereum has fallen to new lows
BTC ECHO analyst Leon Wideman shared Glassnode data, which showed this Exchange balances For Bitcoin and Ethereum are at their lowest levels in years. The supply of Bitcoin on exchanges fell to 11.6%, while the supply of Ethereum fell to 10.6%. This indicates that Crypto whales These tokens have been collected and transferred to self-custody.
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Weidman highlighted the importance of this development, noting that a contraction in supply was imminent. This supply pressure could help push Bitcoin and Ethereum prices higher from then on Most investors Look to accumulate now rather than unload their holdings. In line with this, the analyst urged his followers to “prepare for the next big step.”
Interestingly, Cryptoanalyst Ali Martinez He suggested that this move may have already begun Approval of Spot Ethereum ETFs. Statement with an X (formerly Twitter) mail Nearly 777,000 Ethereum ($3 billion) have been withdrawn from cryptocurrency exchanges since… Securities and Exchange Commission (SEC) I agreed to this money.
Once it finally launches, Spot Ethereum ETFs are expected to start appearing Running bull in full gear. As such, it is not surprising that these cryptocurrency whales are looking to position themselves at the forefront of this development. Bloomberg Analyst Eric Balchunas He expected that these funds would likely begin trading by July.
However, research firm Kaiko has done just that to caution These funds may not immediately send the price of Ethereum to all-time highs (ATHs). The second-largest cryptocurrency token is likely to face significant selling pressure thanks to potential outflows from Grayscale's Spot Ethereum ETF. This is based on outflows of $6.5 billion Grayscale's Spot Bitcoin ETF It was recorded in the first month of trading, which led to a significant decline in the price of Bitcoin.
ETH could reach a new all-time high in record time
Cryptocurrency analyst Michael Nadeau He suggested that Ethereum could still reach a new ATH once Spot Ethereum ETFs start trading faster than Bitcoin after the launch. Bitcoin ETFs. He noted that Ethereum does not have the same amount of “structural selling” that Bitcoin experiences, as Ethereum validators do not have to sell their holdings to compensate for it. Operating costsUnlike Bitcoin miners.
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He also highlighted that 38% of Ethereum's supply is locked on-chain and claimed that “Ethereum is more reflective than Bitcoin.” He further explained that this reversal is evident in how Ethereum is driving on-chain activity, leading to more Ethereum burned down. Given this, Grayscale's outflows may not impact the price of Ethereum as much as they did on the price of Bitcoin, which could cause the second-largest cryptocurrency token to reach a new ATH in no time.