Kraken, a popular cryptocurrency exchange, is experiencing a surge in demand for Bitcoin and Ethereum, leading to a depletion of its reserves. According to a report by Joao Wedson, founder and CEO of Dominando Cripto, Kraken’s Bitcoin reserves currently stand at 122,300 BTC, the same level as in 2018. Additionally, this is the first time since early 2016 that Kraken’s Ethereum reserves have dropped below 1 million units.
The increased interest in cryptocurrencies can be attributed to the introduction of spot Bitcoin ETFs and, more recently, spot Ethereum ETFs. This has attracted a significant number of investors who are looking to diversify their portfolios and capitalize on the bullish trends in the market.
As a result of the surging demand, many exchanges, including Kraken, are facing a shortage of cryptocurrency reserves. Despite the recent approval of the Ethereum ETF by the SEC, exchanges are already experiencing a lack of liquidity. In fact, over 777,000 ETH, equivalent to around $3 billion, have been withdrawn from cryptocurrency exchanges as of June 2nd.
If this trend continues, there could be a supply shock for these digital assets, potentially impacting their prices in the long run. It is important for investors to remain cautious and be aware of the rising threat of scams in the cryptocurrency world, as highlighted by the Shiba Inu (SHIB) team.