All eyes are on the top cryptocurrency markets right now. Both Bitcoin and Ethereum appear to make significant strides to push their values higher. An intriguing development, as ETH and BTC balances on exchanges turned very negative this past week.
Ethereum Balances On Exchanges Flash Green
There has always been talking about triggering a “supply shock” for top crypto assets. To initiate such a supply shock, the balances on exchanges for that asset need to decrease over time. It is complicated to achieve due to cryptocurrencies being volatile by default. Every time the price moves in either direction, traders will begin depositing or withdrawing funds accordingly.
For Ethereum, the balances on exchange are headed in the right direction this week. Per Viewbase, several exchanges noted no real change – which seems impossible, whereas others saw a weekly outflow of up to 51,415 ETH. It is interesting to see how traders move funds from one platform to the next whenever some form of price momentum occurs. The biggest inflow comes from OKEx, which is not too surprising.
The big takeaway is how Gemini, Huobi, FTX, Bittrex, Bitstamp, and bitFlyer all saw significant ETH outflows. These platforms all note four and five-digit dips in ETH balances on exchanges. However, Binance, Kraken, OKEx, and MXC all saw significant increases. Even so, there is a negative weekly netflow of over 69,000 ETH, confirming it is slightly harder to buy ETH from trading platforms this week.
Whether these lower balances on exchanges directly influence the Ethereum price or vice versa will always remain a tough question to answer. However, it seems as if the metrics align for Ethereum to make a positive market move. The current price momentum is promising and hints at a potential return to the $4,000 level. However, the uptrend can still fall apart at any moment. One cannot ignore the volatile nature of cryptocurrencies.
Bitcoin Shows Promising Momentum
When the Ethereum balances on exchanges start to go down, it is crucial to look at Bitcoin’s metrics. Interestingly, both assets note very similar trends this past week. Bitcoin has a healthy negative netflow of over 10,400 BTC. Despite heavy deposits to Binance and OKEx, the outflow from Bitfinex and Huobi more than makes up for it. Although it is far from a supply shortage, this trend is very promising for the overall market trend.
As Bitcoin and Ethereum show very similar metrics, exciting things are bound to happen. For example, the current bull run may trigger a new all-time high for both assets. However, nothing is ever set in stone in this industry, and a market reversal will always be possible. The coming days will undoubtedly prove interesting for the two leading cryptocurrencies by market cap.