Ethereum Reserves on Centralized Exchanges Drop to a 9-Year Low
The amount of Ethereum (ETH) on centralized cryptocurrency exchanges has hit its lowest level since November 2015.
According to analysts, the total ETH balance on exchanges now stands at 8.97 million ETH, a 16.4% decline from the previous week.
Why Are Investors Withdrawing ETH from Exchanges?
The primary reason behind this trend is the growing popularity of DeFi platforms and ETH staking services.
Investors prefer staking ETH rather than holding it on exchanges.
ETH staking provides passive income, making it an attractive alternative to simple holding.
A reduced ETH supply on exchanges limits selling pressure, which could positively impact price action.
Despite this, ETH remains in the $1,950 – $2,000 range, lacking enough buyer support to confidently break above $2,000.
Solo Bitcoin Miner Successfully Mines a Block and Earns $266,000
A rare event occurred in the Bitcoin network, where a solo miner successfully processed a block and received a reward of 3.125 BTC, equivalent to $266,000.
This is an exceptional case because the probability of a solo miner finding a block in Bitcoin’s network is extremely low.
Typically, Bitcoin mining requires massive computing power, with most blocks being mined by large mining pools.
The solo miner operated with a hash rate of just 120 TH/s, which is 1,000 times lower than that of major mining pools.
This event proves that despite fierce competition, individual miners still have a chance to earn block rewards.
Bitcoin ETFs See Six Consecutive Days of Inflows
After five weeks of outflows totaling $6.4 billion, Bitcoin ETFs have started recording consistent inflows.
Investors are regaining interest in BTC, despite market volatility.
Bitcoin ETF inflows indicate increasing confidence from institutional players.
Sustained inflows could support BTC prices in the coming weeks.
This trend suggests that investor confidence in Bitcoin is returning, which could serve as a catalyst for further growth.
The Fed Holds Interest Rates Steady but Warns of Prolonged Inflation Fight
The Federal Reserve has maintained interest rates at 4.25-4.50%, aligning with market expectations.
Fed Chair Jerome Powell noted that U.S. GDP growth is slowing, while inflation remains a key concern.
Key Takeaways from the Fed Meeting:
– The Fed does not see an imminent risk of stagflation, despite slower economic growth.
– Trump’s trade tariffs add extra inflationary pressure.
– The Fed is slowing its balance sheet reduction (QT) to $5 billion per month.
Trump Continues Pressuring the Fed to Lower Interest Rates
Former U.S. President Donald Trump continues to pressure the Fed, demanding a swift rate cut.
He is doing this not only through public statements but also through economic actions, including trade wars.
Experts believe this situation could lead to a confrontation between the Fed and the White House, where the key question will be:
Who will break first—the U.S. economy or the Fed?
If rates remain high for too long, it could negatively impact stock and crypto markets. However, if they are cut too quickly, it could trigger another wave of inflation.
This past week has been filled with significant developments in both the crypto market and global economy:
– ETH reserves on exchanges have dropped to their lowest level since 2015, signaling a mass transition to staking.
– A solo Bitcoin miner successfully mined a block, earning $266,000, a rare feat given the dominance of large mining pools.
– Bitcoin ETFs have seen six consecutive days of inflows, which could support BTC prices.
– The Fed has held interest rates steady, but warns of a prolonged fight against inflation.
– Trump is pressuring the Fed to cut rates, which could influence future U.S. economic policy.
The crypto market remains in a state of anticipation, closely watching the actions of the Fed and institutional investors. In the coming weeks, the performance of Ethereum, Bitcoin, and macroeconomic decisions will be key factors shaping the market’s direction.
