Bitcoin and Ethereum Tipped to Explode to new levels

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Bitcoin and Ethereum Tipped to Explode to New Levels

The crypto currency market is experiencing significant shifts with on chain data and regulatory developments shaping investor sentiment. In this roundup we’re going to take a look at the latest trends surrounding Ethereum's exchange reserves.

The record lows in active supplies for Bitcoin and Ethereum, Wall Street's anticipation of a USD 100 billion crypto potential through Bitcoin ETFs and the Canadian regulator's call for feedback on crypto asset exposure disclosure requirements.
The are current recent challenges faced by Ripple's XRP which have a potential impact on investors.

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Ethereum Investors' Strategic Moves

With 152,583 ETH being shifted into long term storage pointing to a strong buying momentum among US based corporate entities who are positioning themselves for the upcoming ETF. The Coinbase Premium Index has maintained positive values for five consecutive days reflecting increased interest from institutional investors.

A key indicator of this bullish sentiment is the Ethereum exchange reserves dropping to a 5 year low. According to CryptoQuant Exchange Reserves charts investors have withdrawn 152,583 ETH from exchanges since Blackrock's filing.

This has reduced the total market supply to 14.3 million Ethereum the lowest since July 2018. This decline in exchange supply coupled with potential interest from crypto whales attracted by the Spot ETF filing could cause an upward pressure on ETH prices moving towards the USD 4,000 mark if Securities and Exchange Commission (SEC) approves the ETF applications.

Bitcoin and Ethereum Active Supply at Record Lows

Representing the lowest values since data collection began in 2017. This decline in active supply is significant considering that over 59% of Bitcoin's supply was active between March 2017 and 2018 and Ethereum saw over 86% of its supply move between July 2016 and 2017.

The record low active supply comes ahead of the anticipated block emission rewards halving projected for April of next year. Although the supply of inactive coins is higher than ever network transactions remain near their peak suggesting a complex interplay of factors influencing the market dynamics.

Wall Street's Bitcoin ETF Hype

With a potential breakthrough for institutional and retail investors likely. The anticipation is driven by the belief that wealth managers and financial advisers will allocate a portion of their trillion dollar portfolios to crypto currencies. The current availability of only futures based Bitcoin ETFs emphasizes the potential for significant capital inflows once SEC approval is granted.

The hype around Bitcoin ETFs underscores the evolving perception of crypto currencies as a legitimate asset class. If approved these ETFs could open the floodgates to a USD 100 billion crypto market on Wall Street introducing new avenues for investors to participate in the digital asset space.

Canadian Regulator Seeks Feedback on Crypto Asset Exposure Canada's Office of the Superintendent of Financial Institutions (OSFI) has initiated a consultation period on crypto asset disclosure requirements for federally regulated financial institutions. This move aligns with the 2023 federal budget's commitment to establish guidelines for banks and pension funds regarding crypto exposure disclosure.

The consultation is influenced by a similar inquiry by the Bank for International Settlements (BIS) and reflects global efforts to address potential risks associated with crypto assets in the financial sector. The Basel Committee on Banking Supervision's (BCBS) consultation on banks' crypto asset exposure announced in October serves as a backdrop for the OSFI's efforts. Canadian financial institutions are expected to provide feedback on the BCBS proposals ensuring that the guidelines align with the Canadian context.

The consultation period ends on January 31, 2024 and highlights the ongoing efforts to create a regulatory framework that safeguards the financial sector while accommodating the evolving crypto landscape.

XRP's Downtrend

The Basel Committee on Banking Supervision's recent report reveals that Polkadot has eclipsed Ripple in terms of crypto asset exposure, adding to XRP's challenges.

This week has already opened to be a highly volatile week with Bitcoin and Ethereum looking well positioned to continue to drive forward, but what’s on the cards for all our other Altcoins is yet to be seen.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using InLeo Alpha