If you have followed my blog for any length of time you have likely seen several posts talking about the potential supply shortage that is likely to face bitcoin in the near future, if it's not already.
Here's a recent post talking about exactly that:
Several large buyers have been buying up all the available bitcoin on exchanges and moving it to cold storage.
The end result is likely the price of bitcoin absolutely flying with very little selling pressure to slow it down, at least for a period of time.
Now it looks like the same thing may be starting with Ethereum as well...
The balance of Ethereum sitting on exchanges recently dropped by roughly 20% in a matter of hours as can be seen on the chart above.
While the large drop shown in the chart above may look alarming, if we zoom out a bit, we can see that this trend has actually been in place for some time...
Check it out:
While this trend has been in place for some time, it does look to be accelerating recently.
This is likely to be very good news for the price as less supply means less sellers blocking the price from going higher, which is exactly what it has been doing quite a lot of as late.
The really neat thing about this as it relates to us and LEO is that LEO is basically pegged to ETH at this point due to the Uniswap listing, so what's good for ETH will also be good for LEO in terms of USD price.
So, the higher ETH goes, likely the higher LEO goes in terms of dollars.
Some out there look at this data and wonder why ETH has not yet made a new all time high as of yet, and while there are probably several reasons for this, one is that while the supply on exchanges is shrinking, it's not yet to where it was near the all time highs for ETH.
Check it out:
As you can see, the total supply on exchanges is still quite a bit higher than where it was back near the all time high in price seen in early 2018.
There is a very strong correlation between supply on exchanges and price, specifically an inverse correlation.
As the supply on exchanges goes down, the price tends to go up.
If this trend continues with supply being pulled off exchanges, there's a very good chance that the price continues to go up.
Which, as mentioned above, would likely also be very good news for LEO.
Stay informed my friends.
Posted Using LeoFinance Beta