Bitcoin and Ethereum Supply Dropping on Major Crypto Exchanges, Changing Tide Favors Bulls: Santiment
A leading crypto analytics firm is assessing the state of Bitcoin (BTC) and Ethereum (ETH).
According to Santiment, the amount of Ethereum held by crypto exchanges is now at its lowest level in more than two and a half years.
“Ethereum holders continued to make history by lowering the percent of ETH held on exchanges to its lowest ratio since November 2018.”
The crypto analytics firm argues that this drop is bullish for the second-largest cryptocurrency.
“Dropping below 18% for the first time in 31 months lowers the risk of a future major sell-off.”
Santiment says Bitcoin is witnessing a similar situation, albeit over a shorter timeframe.
“Following Bitcoin’s mid-May dip, the supply of BTC sitting on exchanges has steadily fallen back down and locked away for safekeeping by HODLers (hold on for dear life).
This is a good sign for bulls, as funds moving away from exchanges lowers the risk of major sell-offs.”
Santiment says that the amount of Ethereum in the hands of large investors has recently reached the highest level in nearly four years.
“Our whale tracking data indicates that ETH whale address holding 10k+ coins now hold 70% or more of the supply for the first time since September 2017.”
In addition, Santiment says that this week, Ethereum’s address activity had exceeded Bitcoin’s for the first time ever as its price rebounded from levels last recorded in March.
“For the first time in crypto history, ETH address activity is ABOVE BTC address activity, as prices have soared back above $2,100.”
The crypto analytics firm adds that the increase in Ethereum’s address activity had caused a noticeable rebound in the prices of altcoins.
“Altcoins have enjoyed quite the major resurgence over the past 36 hours or so. Much of this can be attributed to ETH’s address activity pop that saw it surpass event BTC’s.”
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Author: Daily Hodl Staff
