Is the Kraken in trouble? Biggest Bitcoin and Ethereum Exit
Cryptocurrency exchange kraken saw the largest outflow of Bitcoin (BTC) and Ethereum (ETH) since 2021.
Crypto Exchanges See Big Drop in Bitcoin and Ethereum
Blockchain analysis platform CryptoQuant quoted a post by Joao Wedson, founder and CEO of Dominando Cripto, detailing the magnitude of the supply shortage experienced on the exchange recently.
According to Wedson, “Kraken’s #Bitcoin reserves have fallen to the same level as in 2018 and currently hold 122,300 BTC. Kraken’s reserves for #Ethereum fell below 1 million units for the first time; “This is a level not seen since early 2016.”
This excitement around spot Bitcoin ETFs and much more recently spot Ethereum ETFs has contributed to Kraken being predisposed to this position. Investors interested in cryptocurrencies have seen a huge boost over the past five months with the launch of spot Bitcoin ETFs. Many crypto enthusiasts have consistently bought into the market, both for the purpose of expanding their financial portfolios and in response to Fear of Missing Out (FOMO) on major uptrends.
High demand for cryptocurrencies such as Bitcoin and Ethereum has caused discomfort on many exchanges, including Kraken. Crypto reserves on exchanges are starting to run out. The Securities and Exchange Commission (SEC)’s Ethereum ETF approval is only a week old and stock markets are starting to experience a drought.
As of June 2, more than 777,000 ETH worth approximately $3 billion had been withdrawn from crypto exchanges. It is worth noting that trading of spot Ethereum ETFs has not yet begun, but there is an expectation that S-1 filings will be approved soon.
At this pace, these digital assets are slowly moving towards a supply shock, and this move is likely to have a huge impact on their prices in the long run.
Effect of Supply Shock on Bitcoin Price
Currently, Bitcoin is trading at $69,252.47, up 1.75% in the last 24 hours, while Ethereum is trading at $3,787.97, down 0.21%. Considering the current situation on crypto exchanges, their prices may see a significant increase in the next few months. At the same time, it is thought that this potential outlook may be due to other growth factors as well as the supply shock.
Analysts strongly believe in the outlook for derivatives market open interest (OI) as Bitcoin’s bullish outlook has reasonably greatly improved.
While the market expects massive growth in Bitcoin price, Apollo co-founder Thomas Driver made a dramatic prediction about the cryptocurrency. Driver accurately predicted that the price of Bitcoin could reach $3.5 million per coin by 2030. Bitcoin’s current price trend does not necessarily indicate whether the Apollo co-founder is on the right track. However, a jump in Bitcoin price could trigger a corresponding increase in the market value of other digital assets.
Read More: Binance and Kraken Facing Legal Action for CSW Delisting Bitcoin SV Due to Satoshi Allegations
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations to ensure mainstream acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. follow him excitementLinkedIn
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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