In what can simply be described as the massive exodus of Ethereum, the CEO of CryptoQuant, Ki Young Ju, has reported that about 400,000 Ethereum which is worth roughly $800 billion has left the US-based cryptocurrency exchange, Coinbase, in the past week, suggesting that institutional investors might be having a late hour accumuaton of the digital asset. Ki Young Ju made this revelation known via a recent tweet where, quoted verbatim, he had said:
“400,000 ETH flowed out from Coinbase a few days ago. Speculative guess, institutions are now buying ETH.”
Young Ju's assertions corroborate widespread speculations that institutional investors were accumulating Ethereum beginning from the Q4 of last year and that the asset could rally up to $10k before the end of the year. These notions are further supported by the disclosure of Grayscale that institutional investors account for 93% of the inflow of money into cryptocurrencies in the last quarter of 2020.
Grayscale itself, being one of the largest cryptocurrency asset management companies in the world, has been accumulating Ethereum alongside other reputable cryptocurrencies in the past months.
Very recently, the Daily Hodl had reported that Year-to-date fund inflows into Ethereum totaled $744 million, representing 17% of the total capital inflows into all crypto assets. This clearly means that Ethereum is having a large chunk of the pie in terms of the monies that have been flowing into the cryptocurrency market in the past year.
An exodus of Ethereum from the Coinbase exchange simply means that the coins are either being used in other profitable ways across other platforms or that whales are transferring the asset to their cold storages, creating scarcity on the exchanges and an eventual surge in price.
Only a few days ago, Ethereum once again retested the $2k high and managed to stay above the crucial level. If the present momentum in the market continues and Bitcoin manages to decisively break above the $60 price mark, then we can expect Ethereum to make massive gains this Q2. Whatever happens, it will be nice to see how time turn out in the coming days.
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ETH prices have recovered nicely. Someone must be buying big.
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That's correct. Breaking about $2500 should open new windows of opportunities for growth.
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