A record amount in Ethereum was withdrawn from crypto exchanges in a day

More than a billion dollars worth of Ethereum was withdrawn from cryptocurrency exchanges on Wednesday September 15th. This is a new record for the outflow of coins from trading floors in just 24 hours.

Many expect that this event will be accompanied by a rapid increase in the price of ETH, since usually large withdrawals of a cryptocurrency signal the desire of holders to store it for a long time in cold wallets and, in fact, makes the asset less available. Let’s talk about what is happening in more detail.

We checked the actual data: today Ethereum is valued at just over $ 3,500. At the same time, during the day, the cryptocurrency managed to go down from the peak of 3585 to 3350 dollars.

Ethereum price chart

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According to the results of the week, ETH is showing almost 10% growth, which is one of the best results among cryptocurrencies with the largest capitalization. Only Polkadot and Avalanche gave more percent on a weekly basis – they have 21 and 51 percent, respectively.

блокчейн криптовалюты

Top cryptocurrencies rating

Most importantly, ETH is less than 20 percent behind its peak price result. Accordingly, the prospects for renewal of the maximum value no longer seem as illusory as it was during the May collapse of Ethereum to $ 1,800.

эфириум курс криптовалюты

Ethereum Price Indicators

When will Ethereum grow?

According to Cointelegraph, $ 1.24 billion in Ethereum was withdrawn from exchanges on September 15. According to analysts at IntoTheBlock, after the withdrawal of a billion dollars in ETH from exchanges in April in a very short period of time, the price of the cryptocurrency rose by more than 60 percent in just a month.

The logic here is that the available ethers in circulation are becoming less and less. Some of them are sent to decentralized protocols, where, among other things, they are used to earn interest. Some users simply choose to store their crypto on a Ledger-style hardware wallet for added security. In addition, every minute several ETH are burned as commissions due to the implemented EIP-1559.

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Volumes of ETH withdrawals from exchanges

It is noteworthy that this time the bullish effect of the withdrawal of funds may be even stronger. The fact is that at the beginning of August, the London hard fork was activated on the Ethereum network, in which they introduced a mechanism for burning coins in each block. Thanks to him, in theory, the supply of ETH can decrease every day, which will only increase the likelihood of a sharp rise in its value.

Since the activation of London, more than 317 thousand ETH worth about $ 1.1 billion have already been burned. At the time of this writing, altcoin burning rates reach 4.69 ETH per minute.

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Coin burning rates are highlighted in the screenshot

A similar situation with an outflow is observed in Bitcoin: over the past few weeks, BTC stocks on crypto exchanges have dropped to their lowest value since February 2018.

Perhaps the simultaneous outflows of BTC and ETH indicate a high likelihood of rapid market growth in the fourth quarter of this year. Recall that many cryptanalysts predict that the value of Bitcoin will rise to at least 100 thousand dollars by January.

Note that although these predictions sound very nice, they do not have to come true. In this regard, it makes sense to buy coins and hold them without risk management tools like stop losses, there is no need. Well, when working with investments, you must first of all listen to yourself and make all investment decisions yourself.

Биткоин график трейдинг

Dynamics of changes in the reserves of exchanges in Bitcoin

In the meantime, more and more positive news is emerging from the point of view of the fundamental causes of bull run. For example, financial services firm Revolut recently partnered with WeWork to lease a large office in Dallas, Texas. Most interestingly, rent payments will be made in Bitcoin, as Revolut management considers the main cryptocurrency to be an excellent means of payment for such large transactions, given the absence of intermediaries.

Tweet about partnership with Revolut

Revolut Твиттер сообщение Биткоин

As a reminder, WeWork announced that it began accepting crypto payments for its services back in April this year. This is made possible by the financial provider BitPay. American crypto exchange Coinbase was the first company to pay for workspace with cryptocurrency.

We believe that the situation with Ethereum looks more positive than ever. There are fewer ETH available on exchanges, the burning procedure has already taken ETH out of circulation for more than a billion dollars, and experts expect the project to become even more popular after its transition to Proof-of-Stake early next year. In this regard, various predictions about the prospects for cryptocurrencies do not seem far-fetched.

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