Supply Squeeze Imminent
Recent data reveals that the supply of Bitcoin (BTC) and Ethereum (ETH) on exchanges has reached new lows. This suggests that major crypto whales are accumulating these tokens and storing them in their own wallets.
Whales Accumulating
Analyst Leon Waidmann believes this development signals an impending supply squeeze. As investors continue to accumulate rather than sell, the limited supply could drive up the prices of BTC and ETH.
Spot Ethereum ETFs Boosting Demand
Crypto analyst Ali Martinez points to the approval of Spot Ethereum ETFs as a catalyst for this supply squeeze. Since the SEC’s approval, nearly 777,000 ETH has been withdrawn from exchanges.
Potential Price Surge
Analysts predict that the launch of Spot Ethereum ETFs will further boost the crypto market. However, Bloomberg analyst Eric Balchunas cautions that the funds may not immediately send ETH to new highs.
Ethereum’s Unique Advantages
Crypto analyst Michael Nadeau suggests that Ethereum may reach a new all-time high faster than Bitcoin did after the launch of Spot Bitcoin ETFs. He attributes this to Ethereum’s lower “structure selling” and the large amount of ETH locked on-chain.
Grayscale’s Impact
While Grayscale’s Spot Ethereum ETF could potentially impact ETH’s price, Nadeau believes Ethereum’s unique characteristics may mitigate its effects. This could lead to ETH hitting a new high in record time.
