Ethereum

Bitcoin ETF

Bitcoin

Spot

Time

<p>Recent data shows that the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-coinbase-9-year-low/">supply of Bitcoin (BTC)</a> and Ethereum (ETH) on exchanges has dropped significantly. This means the <a href="https://www.newsbtc.com/news/ethereum/ethereum-crypto-analyst-1900/#:~:text=If%20that%20happens%2C%20Ethereum%20could,its%20current%20price%20of%20%241%2C600.">largest crypto tokens</a> by market cap could be well-primed for significant moves to the upside, with a supply squeeze imminent.&nbsp;</p> 
<h2 id="supply-of-bitcoin-and-ethereum-drop-to-new-lows">Supply Of Bitcoin And Ethereum Drop To New Lows</h2> 
<p>BTC ECHO analyst Leon Waidmann shared Glassnode data, which showed that <a href="https://www.newsbtc.com/news/ethereum/ethereum-bullsh-supply-exchanges-hit-new-all-time-lows/">exchange balances</a> for Bitcoin and Ethereum are at their lowest in years. Bitcoin’s supply on exchanges has dropped to 11.6%, while Ethereum’s supply has dropped to 10.6%. This suggests that <a href="https://bitcoinist.com/bitcoin-shark-whale-investors-go-to-the-market-heres-how-much-btc-they-bought/" rel="nofollow">crypto whales</a> have been accumulating these crypto tokens and moving them to self-custody.&nbsp;</p> 
<img loading="lazy" decoding="async" class="size-medium wp-image-611225" src="https://www.newsbtc.com/wp-content/uploads/2024/06/Bitcoin-Ethereum.png?w=460&amp;resize=460%2C261" alt="Bitcoin Ethereum" width="460" height="261" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/Bitcoin-Ethereum.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/06/Bitcoin-Ethereum.png?w=460&amp;resize=460%2C261 460w" sizes="(max-width: 460px) 100vw, 460px" data-recalc-dims="1"> 
<p>Waidmann highlighted the significance of this development, noting that a supply squeeze was imminent. This supply squeeze could help drive up the prices of Bitcoin and Ethereum since <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-whales-buying-spree/">most investors</a> look to be accumulating at the moment rather than offloading their holdings. In line with this, the analyst urged his followers to get “ready for the next big move.”</p> 
<p>Interestingly, <a href="https://bitcoinist.com/dogecoin-price-100-to-0-322/" rel="nofollow">crypto analyst Ali Martinez</a> suggested that this move might have begun following the <a href="https://bitcoinist.com/ethereum-spot-etfs-trading/#:~:text=Bloomberg%20analyst%20James%20Seyffart%20has,approval%20would%20come%20this%20week." rel="nofollow">approval of the Spot Ethereum ETFs</a>. He stated in an X (formerly Twitter) <a href="https://x.com/ali_charts/status/1797231021147947412" rel="nofollow">post</a> that almost 777,000 ETH ($3 billion) have been withdrawn from crypto exchanges since the <a href="https://www.newsbtc.com/crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC's%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&amp;text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.">Securities and Exchange Commission (SEC)</a> approved these funds.&nbsp;</p> 
<p>Once they finally launch, these Spot Ethereum ETFs are expected to kick the <a href="https://www.newsbtc.com/analysis/xrp/bitcoin-bull-run-70000-level/">bull run into full gear</a>. As such, it isn’t surprising that these crypto whales are looking to position themselves ahead of this development. <a href="https://bitcoinist.com/ethereum-spot-etf-experts-weigh-in-on-selling-point/" rel="nofollow">Bloomberg analyst Eric Balchunas</a> predicted these funds will likely begin trading by July.&nbsp;&nbsp;</p> 
<p>However, research firm Kaiko has <a href="https://www.newsbtc.com/news/ethereum/ethereum-spot-etfs-grayscale/">warned</a> that these funds may not instantly send Ethereum’s price to new all-time highs (ATHs). The second-largest crypto token will likely face significant selling pressure thanks to the potential outflows from Grayscale’s Spot Ethereum ETF. This is based on the $6.5 billion outflows that <a href="https://cryptorank.io/news/feed/6c106-bitcoin-etf-outflows-equilibrium-grayscale" rel="nofollow">Grayscale’s Spot Bitcoin ETF</a> recorded in its first month of trading, which led to a significant decline in Bitcoin’s price.&nbsp;</p> 
<h2 id="eth-could-hit-a-new-all-time-high-in-record-time">ETH Could Hit A New All-Time High In Record Time</h2> 
<p><a href="https://bitcoinist.com/is-ethereums-latest-us-spot-etf-approval-priced-in/" rel="nofollow">Crypto analyst Michael Nadeau</a> suggested that Ethereum could still hit a new ATH once the Spot Ethereum ETFs begin trading faster than Bitcoin did following the launch of the <a href="https://bitcoinist.com/bitcoin-spot-etfs-breach-1-million-btc-threshold/" rel="nofollow">Spot Bitcoin ETFs</a>. He noted that Ethereum doesn’t have the same amount of “structure selling” that Bitcoin encounters since ETH validators do not have to sell their holdings to offset <a href="https://bitcoinist.com/by-numbers-how-bitcoin-mining-costs-post-halving/" rel="nofollow">operating costs</a>, unlike Bitcoin miners.&nbsp;</p> 
<p>He also highlighted that 38% of Ethereum’s supply is locked on-chain and claimed that “ETH is more reflexive than BTC.” He further explained that this reflexivity is evident in how Ethereum leads in on-chain activity, which leads to more <a href="https://bitcoinist.com/eth-is-expected-to-be-burned-every-year/" rel="nofollow">ETH burned</a>. Considering this, Grayscale’s outflows may not impact Ethereum’s price as they did on Bitcoin’s price, which could cause the second-largest crypto token to hit a new ATH in no time.&nbsp;</p> 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/JVlUyIN5/" alt="Bitcoin price chart from Tradingview.com" width="3286" height="1576"> 
<p>&nbsp;</p>

Bitcoin, Ethereum On Exchanges Drop To New Lows, What A Supply Squeeze Would Mean For The Market

Table of Contents

NewsBTC

Other articles published on Jun 3, 2024

Will Solana Overcome Bearish Trends to Break the $200 Barrier?

Is This New Solana Meme Coin on the Verge of Exploding? Sealana Raises Over $3M

GME vs Dogecoin: Which Meme Coin Will Hit $1 First In 2024

Toncoin Surges into Top 10 Cryptocurrencies, Fueled by Viral Game Hamster Kombat

XRP Price Struggle Continues: Will It Find Support?

Maple Finance Announces Syrup Protocol; Token Announcement Soon!

Join our free newsletter for daily crypto updates!