Report Shows ETH Balances in Exchanges Are Close to All-time Highs, BTC Withdrawals Grew

golden bitcoin and golden ethereum Bitcoin vs Ethereum

The number of Ethereum (ETH) held in exchanges has been increasing over the last months, reaching an all-time high in March 2020 when the market abruptly crashed due to the Coronavirus crisis. While ETH in exchanges are reaching an all-time high, the contrary is happening with Bitcoin (BTC), which we can see a massive reduction in the amount of BTC stored in exchanges. 

ETH in Exchanges Remains Close to ATHs

Ethereum balances in exchanges are close to all-time highs according to a recent report released by the cryptocurrency analyst Ceteris Paribus on Twitter. He suggested that this could be very bullish for Bitcoin but bearish for Ethereum. 

There is also a clear correlation in terms of price performance and BTC or ETH held in exchanges. In the case of Bitcoin, during the crash experienced in March, it is possible to see that there was a massive number of BTC withdrawn from exchanges. This is despite the fact that we are at pre-crash levels in terms of price. 

For Ethereum, things are somehow different. The crash had a different effect on the amount of ETH held in exchanges. It seems that users decided to buy ETH and wait with them in the exchange before selling. BTC users seemed to have acquired BTC and store them outside exchanges for long-term investments. 

As Ceteris Paribus explained, this could be very bullish for Bitcoin but bearish for Ethereum. If ETH’s are still located in exchanges, it may certainly be easier for users and investors to dump them if they consider so. Meanwhile, there are fewer BTC in circulation that are exchanging hands. 

Bitcoin balances fell by 300,000 BTC, close to $3 billion, since the Coronavirus crash in March. This is the lowest balance held on exchanges since May 22, 2019 – which is almost one year ago. When this happened, the price of Bitcoin was able to move higher, reaching a few months later a price of $13,750 per coin. 

We cannot say the same about Ethereum, which has reached an all-time after the Black Thursday and are currently up 132,000 ETH (close to $26 million). The main question remains regarding which could be the effect on the price of each of these assets. However, it seems somehow clear that this could be positive for Bitcoin but negative for Ethereum in the coming months.