DOGEUSD Dogecoin

Recent data shows that the supply of Bitcoin (BTC) and Ethereum (ETH) on exchanges has dropped significantly. This means the largest crypto tokens by market cap could be well-primed for significant moves to the upside, with a supply squeeze imminent.  Supply Of Bitcoin And Ethereum Drop To New Lows BTC ECHO analyst Leon Waidmann shared Glassnode data, which showed that exchange balances 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 crypto whales have been accumulating these crypto tokens and moving them to self-custody.  Related Reading: Dogecoin Whales Buy $112 Million Worth Of DOGE As Crypto Investors Turn Their Attention To Meme Coins 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 most investors 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.” Interestingly, crypto analyst Ali Martinez suggested that this move might have begun following the approval of the Spot Ethereum ETFs. He stated in an X (formerly Twitter) post that almost 777,000 ETH ($3 billion) have been withdrawn from crypto exchanges since the Securities and Exchange Commission (SEC) approved these funds.  Once they finally launch, these Spot Ethereum ETFs are expected to kick the bull run into full gear. As such, it isn’t surprising that these crypto whales are looking to position themselves ahead of this development. Bloomberg analyst Eric Balchunas predicted these funds will likely begin trading by July.   However, research firm Kaiko has warned 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 Grayscale’s Spot Bitcoin ETF recorded in its first month of trading, which led to a significant decline in Bitcoin’s price.  ETH Could Hit A New All-Time High In Record Time Crypto analyst Michael Nadeau 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 Spot Bitcoin ETFs. 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 operating costs, unlike Bitcoin miners.  Related Reading: Expert Charts 1,400% Course To $7.5 For XRP Price As RSI Falls To All-Time Low 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 ETH burned. 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.