Deribit Transfers $783 Million in Ethereum to Cold Storage
Ethereum has recently seen significant trading activity on the Deribit Options Exchange, raising questions about its price implications.
Analyst Amr Taha from CryptoQuant reported notable developments, focusing on substantial outflows from the exchange to cold wallets. These movements could impact market sentiment and liquidity.
ETH Netflows on Deribit and Their Implications
Taha noted a transaction of 233,000 ETH transferred to a cold wallet, valued at approximately $783 million, executed at an average price of $3,350 per Ethereum.
Bitcoin also experienced similar activity, with 31,000 BTC worth $3.038 billion moved to cold storage. These transfers suggest strategic motivations that may influence the broader market.
The analysis highlighted four major implications: first, reduced selling pressure due to assets in cold storage is less likely to be sold quickly, decreasing exchange liquidity. Second, if demand remains steady, this scenario may support price stability or further boost the bullish trend.
Third, large-scale transfers often indicate institutional accumulation, reflecting confidence in Ethereum’s long-term value. Lastly, Taha pointed out that moving assets to cold storage minimizes exposure to hacking risks and suggests a cautious approach amid regulatory scrutiny or anticipated market volatility. This could lead traders to interpret these transactions as bullish, increasing buying activity.
Ethereum Market Performance
Ethereum is currently trading above $3,300, with an 8.2% increase over the past week and a 1.3% rise in the last 24 hours. Its market cap is approaching $400 billion.
Crypto analyst EᴛʜᴇʀNᴀꜱʏᴏɴᴀL observed that Ethereum's current price chart mirrors patterns from 2016-2017, indicating potential for a "mega bull" run. The analyst predicts that altcoins will follow Ethereum's upward trajectory.
#Ethereum $10k+ step by step!$ETH repeats the bullish megaphone pattern it drew while heading towards the 2016-2017 mega bull period, before the 2024-2025 mega bull period.#Alts will follow! pic.twitter.com/VRVI8lwnsS
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL (@EtherNasyonaL) November 22, 2024
Featured image created with DALL-E, Chart from TradingView.