Kraken, the cryptocurrency exchange, is experiencing a surge in demand for Bitcoin and Ethereum, leading to a shortage of available 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. This is the first time since early 2016 that Kraken’s reserves have fallen below 1 million units for Ethereum.
The increased interest in investing in cryptocurrencies, driven in part by the introduction of spot Bitcoin and Ethereum ETFs, has resulted in a significant number of market purchases by crypto enthusiasts looking to diversify their holdings and capitalize on bullish trends. As a result, exchanges like Kraken are struggling to meet the soaring demand for Bitcoin and Ethereum, with reserves running low.
Although the SEC recently approved the Ethereum ETF, trading in these ETFs has not yet begun, and exchanges are already experiencing a lack of liquidity. Over 777,000 ETH, valued at around $3 billion, have been withdrawn from cryptocurrency exchanges as of June 2nd. If this trend continues, it could lead to a supply shock and potentially impact the pricing of these digital assets in the future.
