Bitcoin and Ethereum exchange reserves crumble away
While Bitcoin takes a short break, the sell-off on the stock exchanges continues. Ethereum is also riding high with buyers. How long will the stock market hold out against the hype?
After turbulent previous weeks, the Bitcoin price (BTC) is currently running out of steam. The major resistance at 40,000 US dollars still seems to be too big an obstacle for the bulls. On the day, Crypto Genius the cryptocurrency is down 1.2 per cent and is trading at 38,263 US dollars at the editorial deadline.
Ethereum (ETH), on the other hand, has posted a significant gain of 5.9 per cent in the last 24 hours, climbing to its current level of 1,227 US dollars. The regained ground above the thousand mark is thus gradually gaining substance. If Ethereum continues to rise at the same pace, the 2018 all-time high of 1,450 US dollars should soon be updated.
Ethereum holdings are melting down at a record pace
The trend of dwindling exchange reserves that has been evident since 2020 has continued into the new year and has been exacerbated by the rally of the last few weeks of trading. The withdrawal of Ether reserves at the major Exchanges is particularly drastic. In just 48 hours, Ether holdings have dropped from 10.9 million to 8 million Ether, a 25 percent drop, according to Cryptoquant. If this trend continues in the coming weeks, demand threatens to gradually outstrip supply.
As can be seen from the chart, the Ether meltdown on the crypto trading venues is directly related to the recent price jump. In this respect, the rapid Ether decline is not an alarming signal, but on the contrary, an indication of an ongoing bull cycle. The shortage of Ether stocks is gradually pushing the price towards an all-time high and hints at the growth potential that still needs to be exploited beyond that.