Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?
While Ethereum appears to have started a major surge of its own, the asset has recently experienced significant activity on the Deribit options exchange, which begs the question: Represents the price of ETH.
A CryptoQuant analyst named Amr Taha Detailed These developments are presented in an article on the CryptoQuant QuickTake platform. The focus of the analysis is massive capital outflows From exchanges to cold wallets, the potential impact on market sentiment and liquidity is highlighted.
ETH net flow on Deribit and its impact
According to Taha, the Deribit options exchange recorded Notable transactions Involving the transfer of 233,000 ETH to a cold wallet. The transaction was worth approximately $783 million and was executed at an average price of $3,350 per Ethereum.
This is not limited to Ethereum, Bitcoin also saw similar outflows, with 31,000 BTC worth $3.038 billion being moved to cold storage. The transfers have fueled speculation about the motivations behind such activity and its potential impact on the wider market.
Therefore, CryptoQuant analysts highlight four main impacts of this movement. First, the selling pressure has significantly lessened. Assets stored in cold wallets are unlikely to be immediately available for sale, which may reduce liquidity on the exchange.
Taha pointed out that this situation may help price stability and even further Driving a bullish trend market if demand remains stable or increases.
Another key takeaway from these trades is the potential for institutional accumulation. Such large-scale transfers tend to indicate that institutional investors or high-net-worth individuals are confident in the long-term value of Ethereum.
Additionally, Taha highlighted Deribit’s strategy of moving these funds as part of its risk management approach. The analyst wrote:
Moving assets to cold storage is a security practice that minimizes the risk of hackers. This also reflects a cautious approach, possibly due to regulatory scrutiny or anticipated market volatility.
Additionally, Taha stressed that the move could also have an impact on market sentiment, with traders potentially interpreting the trades as bullish, “resulting in increased buying activity.”
Ethereum market performance
At the same time, Ethereum is currently Trading above $3,300 It rose 8.2% last week and 1.3% in the past 24 hours. The asset’s market capitalization has also risen sharply along with its price, and is now valued at nearly $400 billion.
According to EᴛʜᴇʀNᴀꜱʏᴏɴᴀL, a well-known cryptocurrency analyst on
The analyst said that as Ethereum continues to grow, “altcoins will follow suit.”
#Ethereum $10k+ step by step!$ETH Repeating the bullish megaphone pattern that was drawn prior to the 2024-2025 great bull market heading towards the 2016-2017 great bull market.#Alts Will follow! pic.twitter.com/VRVI8lwnsS
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL
(@EtherNasyonaL) November 22, 2024
Featured image created using DALL-E, chart from TradingView
