Bitcoin and Ethereum: On the Verge of a Supply Squeeze? Insights into the Declining Exchange Balances and Implications for Market Dynamics.

Recent data indicates a notable decline in the supply of Bitcoin (BTC) and Ethereum (ETH) on exchanges, hinting at a potential supply squeeze. With Bitcoin's exchange balances at 11.6% and Ethereum's at 10.6%, crypto whales appear to be accumulating these assets and moving them to self-custody.

Crypto analyst Ali Martinez- anticipates this trend could drive up the prices of Bitcoin and Ethereum, with preparations urged for significant market movements. The withdrawal of nearly 777,000 ETH ($3 billion) from exchanges following the approval of Spot Ethereum ETFs aligns with this expectation. These ETFs, predicted to launch by July, could trigger a bullish trend, although caution is advised due to potential selling pressure from Grayscale's Spot Ethereum ETF. (Source: NewsBTC)

Despite this warning, optimism persists regarding Ethereum's potential to reach new all-time highs swiftly, driven by its distinct dynamics and strong on-chain activity. These factors may mitigate the impact of selling pressure, propelling Ethereum to new highs.

In summary, the diminishing supply of Bitcoin and Ethereum on exchanges suggests an imminent supply squeeze, setting the stage for significant market movements, potentially fueled by the impending launch of Spot Ethereum ETFs. $BTC $ETH $BNB

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