Monday, June 3, 2024 ▪
3
min reading ▪ acc
It seems the stars are perfectly aligned for Ethereum to launch an explosive trajectory in the coming weeks! Since the approval of the Ether ETF in the United States on May 23, no less than $3 billion of the digital currency has been massively withdrawn from centralized exchange platforms. A signal potentially announcing a lack of offers in the crypto market!
Crypto: Dangerous drop in Ethereum reserves!
The latest numbers couldn’t be clearer. Between May 23 and June 2, approximately 797,000 Ether worth $3.02 billion were siphoned from the reserves of centralized exchanges. In other words, cryptocurrency investors have significantly reduced the available liquidity for a potential immediate sale.
This massive movement of capital had the immediate effect of further reducing the circulating supply of Ether. And in fact, the latest data from analytics company Glassnode is very telling in this regard! According to their estimates, the percentage of the total ether supply currently held on exchanges has dropped to just 10.6%. Its all-time low in several years!
The perfect ingredient for a new price increase
Under normal circumstances, this very dangerous drop in available reserves could dramatically worsen the buying pressure in the ether markets. Although this sudden reduction in circulating supply goes against the ideal of decentralization, it has often been a precursor to strong speculative bull moves in the crypto sector.
And the opportunity couldn’t be more perfect as the much-anticipated launch of the Ether ETF on the stock market approaches. According to cryptoanalysts, this start of negotiations would even be a “legitimate possibility” by the end of June!
Already palpable enthusiasm, which has not escaped even the experts. Many are already predicting a spectacular rally scenario for Ether, similar to the one seen with Bitcoin after the BTC ETF began trading last January.
Undeniably, all signals seem green for Ethereum crypto to soar to new stratospheric heights in the very near future. The prospect of the first regulated ETF, coupled with a sharp drop in its available supply, could trigger a frenzied buying movement unprecedented. A unique opportunity for brave investors, but also a great risk of a destructive speculative bubble if euphoria sets in.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.