The ether-to-bitcoin (ETH-BTC) ratio has reached its lowest point in 14 months, with the ratio dropping to around 0.0602 on Tuesday. This downward trend confirms the bearish forecasts predicted by analysts for Ethereum, the second-largest cryptocurrency by market capitalization.
One possible reason for this drop in the ETH-BTC ratio is the movement of large token holders, including Ethereum co-founder Vitalik Buterin, who have transferred their coins to various crypto exchanges. This has raised concerns that these investors may be preparing to sell their holdings.
It is worth noting that market participants closely monitor the activity of these large investors, known as whales, as they are considered to have a significant impact on the market. Whenever these whales deposit assets to an exchange, it usually indicates an intention to sell, while withdrawals suggest accumulation.
Vitalik Buterin recently transferred 300 ETH, worth approximately $493,000, to Kraken, a crypto exchange. Although this deposit may seem relatively small, it has sparked speculation among crypto enthusiasts due to Buterin’s prominent position in the Ethereum community.
Additionally, another large holder moved a total of 30,000 ETH, valued at nearly $50 million, to crypto exchanges Binance, OKX, and KuCoin over a four-day period. Furthermore, a crypto wallet that acquired tokens during Ethereum’s initial coin offering (ICO) nine years ago deposited 6,000 ETH, worth just under $10 million, to Kraken.
This wallet originally received around 255,000 ETH during the ICO, which is now valued at $423 million. Selling these tokens at the current price would result in a profit of 527,000%.
The movement of these large ETH holdings to exchanges has raised concerns about further price declines in the near future. Some analysts predict that Bitcoin will continue to outperform the broader crypto market, including Ethereum, due to concerns about Ethereum’s declining protocol revenues.
In conclusion, the recent drop in the ETH-BTC ratio, combined with the movement of large ETH holdings to exchanges, suggests a potential shift in the market dynamics. It remains to be seen how these developments will impact the prices of both Ethereum and Bitcoin in the coming weeks.
– Blockchain data noted by security firm PeckShield
– Lookonchain blockchain sleuth
– Ether-to-Bitcoin ratio (ETH-BTC): The ratio between the price of Ethereum’s native cryptocurrency, Ether (ETH), and the price of Bitcoin (BTC). It provides insights into the relative performance of these two cryptocurrencies.
– Whales: In the context of cryptocurrency, whales refer to individuals or entities that hold a significant amount of a particular cryptocurrency. Their actions, such as buying or selling large amounts of tokens, can have a considerable impact on the market.
– Crypto exchanges: Platforms where users can buy, sell, and trade cryptocurrencies.
– Crypto wallet: A digital wallet used to store, manage, and transact cryptocurrencies.