Recent data indicates significant growth in institutional interest in Ethereum and Bitcoin, which may influence their pricing dynamics.
Ethereum: Increased Holdings Among Treasuries
On August 11, it was revealed that treasury strategies now hold 3.04 million ETH, accounting for 2.51% of Ethereum's total supply. Additionally, Ethereum ETFs collectively hold 5.91 million ETH, or 4.89% of the supply.
The growth of ETH accumulation by treasury firms and ETFs indicates increasing institutional confidence in Ethereum as a store-of-value asset. A larger share of locked supply may create additional demand pressure, potentially increasing price volatility, especially as ETH recently reclaimed the $4,000 level.
Bitcoin: Significance and Stability
Tether CEO Paolo Ardoino stated on X that "Bitcoin is certainty."
This remark emphasizes Bitcoin's perceived reliability in uncertain market conditions. Ardoino's position as the head of the largest stablecoin issuer reinforces the narrative of Bitcoin as "digital gold," potentially boosting investor confidence and attracting further capital inflows into the Bitcoin ecosystem amid global monetary policy volatility.
Crypto Market: Potential Liquidations During Price Swings
On August 11, Coinglass data indicated that if Bitcoin reaches its all-time high, cumulative short liquidations across major centralized exchanges could amount to $793 million. Conversely, a drop below $120,000 could trigger $1.084 billion in long liquidations.
This data highlights the highly leveraged nature of Bitcoin's futures market. An ATH breakout could spark a cascade of short liquidations, accelerating price gains in a positive feedback loop. However, the larger liquidation potential on the long side shows that market sentiment is bullish yet fragile.
In conclusion, the institutional interest in both Ethereum and Bitcoin continues to rise, potentially leading to significant market volatility in the future.
