- Kraken’s Bitcoin and Ethereum reserves hit lowest since 2021 and 2016 respectively.
- Investor sentiment buoyed by spot Bitcoin and Ethereum ETFs anticipation.
- Crypto exchanges face liquidity shortages amid surging withdrawals and ETF approvals.
Recent data indicates that the cryptocurrency exchange Kraken has experienced its largest outflows of Bitcoin
According to Wedson, the Bitcoin holdings at Kraken have dwindled to 122,300 BTC, a figure not seen since 2018. Furthermore, for the first time since the beginning of 2016, Kraken’s Ethereum reserves have fallen below the 1 million mark.
Investor Sentiment is Positive
The anticipation surrounding the launch of spot Bitcoin ETFs and, more recently, spot Ethereum ETFs has contributed to Kraken’s current situation. The past five months have seen a surge in cryptocurrency investment interest, largely fueled by the introduction of spot Bitcoin ETFs.
Crypto enthusiasts have consistently entered the market for various reasons, such as portfolio diversification and taking advantage of significant uptrends.
The overwhelming demand for Bitcoin and Ethereum has strained many cryptocurrency exchanges, including Kraken, which are now facing dwindling crypto reserves. Despite the SEC’s approval of the Ethereum ETF only a week ago, exchanges are already experiencing liquidity shortages.
As of June 2nd, over 777,000 ETH, valued at approximately $3 billion, have been withdrawn from crypto exchanges. Trading in spot Ethereum ETFs has not commenced, although there was anticipation for swift approval of S-1 filings. Should the current withdrawal trend persist, these cryptocurrencies may soon encounter a supply shock, potentially impacting their prices in the long term.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
