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Tag: ETC

  • What’s Behind Bitcoin And Ethereum’s Exchange Exodus?

    What’s Behind Bitcoin And Ethereum’s Exchange Exodus?

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    Crypto investors are not keen on dealing with cryptocurrency trading platforms, which has resulted in the dwindling exchange reserves of Bitcoin and Ethereum. Centralized exchanges on Bitcoin and Ethereum hit a historic low after investors and crypto enthusiasts opted for self-custody solutions for their virtual assets.

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    Staying Away From Cryptocurrency Trading

    A recent trend showed that traders and other enthusiasts choose to hold on to their crypto assets rather than sell them on Bitcoin and Ethereum exchange platforms.

    They preferred direct ownership of their assets using self-custody wallets, which created an increasing demand for self-custody solutions. However, it led to a decline in the liquidity of BTC and ETH on centralized exchanges.

    Strengthening Bitcoin And Ethereum Values

    A positive consequence of traders’ preference for self-custody solutions is the increasing value of Bitcoin and Ethereum assets over time. Traders veering away from cryptocurrency trading platforms create a sense of scarcity, leading to the growth of its value.

    At the time of writing, the price of Bitcoin is pegged at $64,842. Since hitting a record-high of $73,000 in March this year, the price remains somewhere between $66,000 and $49,000. Meanwhile, according to Coinmarketcap, Ethereum is trading at $2,464.

    Source: CoinMarketCap

    Bitcoin, Ethereum Reserves Drop

    Bitcoin and Ethereum on centralized reserves took a nosedive and hit a historic low early this month. As of October 13, CryptoQuant’s chart showed that centralized exchanges for BTC recorded an all-time low of 2,666,717 bitcoins.

    BTC exchange reserves. Source: CryptoQuant

    The highest amount of Bitcoin was pegged at 3,361,854, which was recorded on June 8, 2022. After that period, Bitcoin went on a sharp decline. It hit its lowest level early this month.

    In terms of volume, spot exchanges have 1.1 million Bitcoin in reserves, while derivative exchanges own 1.39 million reserves. By far, Binance owns 563,000 Bitcoin reserves, the largest crypto exchange by trading volume, followed by Kraken with 112,3000 reserves.

    Total crypto market cap currently at $2.2 trillion. Chart: TradingView

    On the other hand, Coinbase Advanced holds 830,530 Bitcoin reserves and Coinbase Prime has 3,000 reserves. Ethereum’s centralized exchanges also face a similar dilemma to Bitcoin wherein its reserves continue to plummet and hit a record low of 18.7 million.

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    According to CryptoQuant, derivative exchanges hold a big portion of Ethereum with 10.3 million in reserves, while 8.4 million Ethereum reserves are being kept at spot exchanges.

    Historically, Ethereum’s all-time high in reserves was 2,310,823 recorded on 6 September 2022. Since that period, Ethereum reserves in central exchanges continue to plunge.

    In terms of reserves, Coinbase has a large reserve of 4.5 million Ethereum, followed by Binance with 3.6 million Ethereum. Kraken also holds a significant Ethereum reserve of 1.3 million.

    Featured image from Pexels, chart from TradingView

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    Christian Encila

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  • Ethereum Classic Explodes Over 50% In Massive Price Jump

    Ethereum Classic Explodes Over 50% In Massive Price Jump

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    The long-awaited arrival of a Bitcoin spot ETF in the US has sparked a surge in cryptocurrency prices, with Ethereum Classic leading the charge among altcoins.

    After languishing around $20 for months, Ethereum Classic (ETC) has skyrocketed over 50% in the past seven days, currently hovering around $29.45 and just a breath away from reclaiming the $30 mark.

    This impressive rally comes amidst a broader market upswing triggered by the Securities and Exchange Commission’s (SEC) historic approval of the Bitcoin Trust ETF on January 10th, 2024.

    ETC price action in the last week. Source: Coingecko

    Ethereum Classic Surge: A Combination Of Factors

    ETF-fueled optimism: The approval of the Bitcoin spot ETF signifies increased institutional interest in the crypto market, a development that traditionally benefits the entire ecosystem, including altcoins like ETC.  This optimism is reflected in the strong performance of other major cryptocurrencies, with Ethereum witnessing a 10% climb and briefly hitting a 20-month high above $2,600.

    Ethereum Classic’s unique appeal: Compared to its Ethereum counterpart, Ethereum Classic boasts a smaller market cap and lower transaction fees, potentially making it a more attractive option for traders seeking higher returns and cheaper on-chain activity. Its recent network upgrades have also bolstered confidence in its technological capabilities.

    Spillover effect and community hype: The Bitcoin ETF approval has undoubtedly fueled a general sense of bullishness across the crypto landscape, influencing investor sentiment towards altcoins with perceived potential. Additionally, the strong community support and active development around Ethereum Classic further contribute to its upward momentum.

    ETC market cap currently at $4.248 billion. Chart: TradingView.com

    ETC Trading Volume Soars

    The surge isn’t just limited to price. Ethereum Classic’s trading volume has also soared by a staggering 276% in the past 24 hours, reaching a volume of $1.8 billion.

    This increase in trading activity further validates the market’s interest in Ethereum Classic and potentially indicates continued upward pressure on its price.

    However, it’s crucial to remember that the crypto market remains highly volatile. While the Bitcoin spot ETF approval and Ethereum Classic’s recent performance are positive indicators, investors should conduct thorough research and consider both the potential benefits and risks before making any investment decisions.

    With its strong community, technological advancements, and now, the tailwinds of the Bitcoin ETF approval, Ethereum Classic has positioned itself as a frontrunner in the current altcoin rally.

    Whether it can sustain its momentum and break through the $30 barrier remains to be seen, but its recent performance signals a renewed level of enthusiasm for this resilient blockchain project.

    Featured image from Shutterstock

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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