The amount of eth held on exchanges has plunged recently to one of its lowest level ever.
In just over a week some one million eth, currently worth $1.2 billion, has been withdrawn from all tracked exchanges, like Coinbase and Kraken.
That’s one of its biggest drop in such a short period, caused presumably by dip buying earlier this week.
Eth held on exchanges has now fallen 40% since May from 14 million to 10 million as of yesterday (pictured above).
That suggests a trend of more buying than selling as new ethereans send their new asset to a cold wallet.
Old ethereans are not sending theirs to exchanges at a rate above new purchases, clearly indicating there is currently more demand than supply.
Bitcoin shares this story, but there hasn’t been a recent drop. Instead withdrawals of bitcoin from exchanges has been gradual and steeper.
There were some three million bitcoin on exchanges in March. Now there’s 2.35 million.
650,000 bitcoin thus has been withdrawn from exchanges, worth close to $26 billion.
Just how much of this is institutional buying is not clear, but it looks like we’re seeing a little bit of a sell side liquidity crisis.