Bitcoin and Ethereum exchange balances drop to lowest levels in 4 years.

The latest data shows that BTC balances have fallen below 2.3 million coins, with a total value of around $160 billion. Similarly, ETH balances have dropped to under 16 million, amounting to less than $59 billion. This trend demonstrates that users have been withdrawing assets from these platforms, not only following the pandemic but also during the 2021 peak, the 2022 Terra-FTX contagion, and even after the approval of spot BTC ETFs. This consistent pattern over the last four years indicates that crypto users have a bullish long-term outlook, expressing confidence in the future appreciation of these assets regardless of market cycles.

Following the COVID-19 crisis in 2020, inflation has had a significant impact on global economies, prompting investors to allocate capital in technologically sound vehicles. Additionally, as the second-largest cryptocurrency and the top altcoin asset, ETH has its own bullish thesis as a leading substitute for BTC. The token powers the largest decentralized finance (defi) ecosystem, which is valued at nearly $70 billion. Moreover, in 2020, the launch of the Beacon chain marked the eventual transition from proof-of-work (PoW) to proof-of-stake (PoS), with over 27% of Ethereum’s supply currently being staked.

The enthusiasm around spot ETH ETF approvals, defi growth, and staking surges has contributed to a positive outlook for the cryptocurrency, encouraging users to “hodl,” a term commonly used in the crypto community to signify holding onto assets for the long term.

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