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A new santiment report shows that over the past week, more than 1.2 million Ethereum worth more than $ 2 has been transferred to crypto exchanges.
This seems to be a sharp turn after a long period of ETH’s withdrawal from the exchanges, a trend that began back in 2020. Santiment is a firm specializing in cryptometrics and chain analysis.
ETHEREUM WORTH $2.21 BILLION HAS RETURNED TO EXCHANGES OVER THE PAST WEEK AFTER A PROLONGED EXODUS OF COINS MOVED FROM EXCHANGES STARTING IN AUGUST 2020. MAY 2021 HTTPS://T.CO/EPKBGVKXYT PIC.TWITTER.COM/UMUDG2WNEV
— SENTIMENT (@SANTIMENTFEED) JUNE 2, 2022
At the beginning of the week, the market seemed to gain some momentum, but the current downturn suggests that we are still in a bear market. Increased ETH transmission to exchanges suggests that investors want to sell off their holdings, and this will further spur bearish sentiment.
According to a report by Santiment, ETH, along with other cryptocurrencies, seems to have entered a period of correction after very good results at the beginning of the year. At the moment, ETH records a loss of 50% for the year. This is accompanied by a loss of market dominance from 20% in 2021 to 18% in 2022.
A recent report on Coin shares suggests A what «Institutional investors increase investments in DOT, ADA and XRP at the expense of Ethereum ». This means that institutional investors are losing interest in ETH and transferring their acquisitions from ETH to other altcoins, which is a threatening sign for the second largest cryptocurrency.
Are cryptocurrencies still associated with the SP500?
On the other hand, ETH and BTC seem to be losing profits. Profits made over the weekend were wiped out. This decline appears to have been impacted by Wednesday’s losses in the SP500 market.
For years, the cryptocurrency market, especially Bitcoin, has tried to separate itself from traditional markets. More often than not, Bitcoin and other cryptocurrencies held on even when other markets were suffering. This has further contributed to the spread of the view that cryptocurrencies are a safe haven for value preservation when inflation hits traditional financial systems.
However, it now seems that cryptocurrencies have not completely separated from the SP500. The current effects are proof of that. Nevertheless, the cryptocurrency market is stable. While BTC and ETH have experienced a flaw, it’s just margins that can be recovered quickly. Bitcoin lost 5.6% and is currently trading at $29.8. ETH lost 6% and is currently trading at $1815.
In a separate statement, Santiment said that while cryptocurrencies such as ETH have experienced a sharp rise in transfers to exchanges, the risk factor is increasing. The profitability of both ETH and BTC has been falling over the past month, peaking 30 days after the SP500 effect on Wednesday.
#BITCOIN AND #ETHEREUM FORGO THE GAINS THEY HAD ENJOYED SINCE THE WEEKEND AFTER #SP500 FELL TO A LOSS ON WEDNESDAY. THE “PROFITABILITY LINE” HAS BEEN CROSSED FOR OUR 30-DAY MVRV METRIC, INDICATING A TEMPORARY INCREASE IN RISK. HTTPS://T.CO/N0ZVUCNGZX PIC.TWITTER.COM/OCBKC2N7G3
— SENTIMENT (@SANTIMENTFEED) JUNE 1, 2022
However, the current market dynamics, which shows a level of stagnation, may be a sign of the beginning of the crypto winter, and this is interesting given that investors are still transferring ETH to exchanges. At the moment, it is not yet clear how this dynamic will affect the market and whether it will continue.
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