From May 23 to June 2, the total Ethereum exchange balance decreased by 797,000 ETH ($3 billion). Such data lead to Cryptoquant.
In other words, the number of coins available for sale decreases as investors move assets to non-custodial wallets.
On May 23, the US Securities and Exchange Commission began discussions on Form S-1 registration statements for spot Ethereum ETFs.
A similar trend with the dynamics of available coins on CEX observed with bitcoins.
📉 Exchange balances for both #Bitcoin and #Ethereum are at their lowest levels in years!🔥
Whales continue to accumulate. #BTC on exchanges is down to 11.6% and #ETH is at 10.6%!
Supply squeeze incoming. 📈
Get ready for the next big move. 🚀 pic.twitter.com/u4j13DZBJk
— Leon Waidmann | On-Chain Insights🔍 (@LeonWaidmann) June 2, 2024
Amid possible approval of exchange-traded funds at QCP Capital admitted growth in quotations of the second largest cryptocurrency by capitalization by 60% – to approximately $6,000. Experts based their forecast on market dynamics after the launch of BTC-ETF.
Previously, the founder and CEO of DeFiance Capital, Arthur Cheong, named $4,500 as a benchmark for Ethereum even before the launch of spot exchange-traded funds.
According to DeFi Report's Michael Nadeau, Ether could benefit from buying more than Bitcoin due to the lack of “structural selling pressure” in the form of miners.
Bloomberg analysts were less optimistic. James Seyffarth predicted demand for ETH-ETFs at 20–25% of spot Bitcoin-based exchange-traded funds, and his colleague Eric Balchunas at 15–20%.
Experts from JPMorgan agreed with them. They named one of the reasons as the outflow of funds from ETHE from Grayscale, as happened with GBTC after the launch of Bitcoin ETF.
Source: Cryptocurrency
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