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The supply of Ether on cryptocurrency exchanges has fallen to levels not seen since November 2015, sparking speculation about a possible price increase. Santiment, a cryptocurrency analytics platform, reported that Ether balances have decreased by 16.4% since January, reaching 8.97 million ETH on exchanges. This movement suggests that many investors are moving their Ether to offline storage wallets, anticipating a long-term increase in its value. Historically, a significant reduction in the supply of an asset can lead to a 'supply shock', driving prices up, as long as demand remains steady or increases. A similar case occurred with Bitcoin, which experienced a price rise after a decline in its supply on exchanges. Cryptocurrency analysts and traders predict similar behavior for Ether, with expectations of an imminent 'major supply shock'. Some experts, like crypto trader Naber, mention that the accumulation of ETH could drive its price to a range of $8,000 to $10,000, representing a 64% increase from its all-time high. However, Ether's current performance against Bitcoin has been the lowest in five years, which generates some short-term pessimism. Despite the hope provided by the decrease in supply, Ether has fallen 26% in the last month, currently trading at $1,971. Additionally, Ether ETFs have experienced significant outflows, accumulating $370.6 million over a 12-day period. The market situation remains uncertain, with analysts divided between the possibility of a significant rebound or a prolonged decline. #SECCryptoRoundtable #BNBChainMeme
The supply of Ether on cryptocurrency exchanges has fallen to levels not seen since November 2015, prompting speculation about a potential price increase. Santiment, a cryptocurrency analysis platform, reported that Ether balances have decreased by 16.4% since January, reaching 8.97 million ETH on exchanges. This movement suggests that many investors are transferring their Ether to offline storage wallets, anticipating a rise in its value over the long term.
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