Wintermute's $160M ETH Deposit Sparks Volatility: What's Next for Ethereum?

Ethereum's price volatility spiked after Wintermute deposited 61,847 ETH worth $160.3 million into Binance and Coinbase. This move raised concerns about selling pressure, but an exchange deposit doesn't necessarily confirm a sale.

Market makers often transfer inventory between venues for liquidity provision and operational purposes. However, if the transferred funds are used for market sales, it could increase short-term supply and create downside volatility.

Ethereum's Exchange Supply Ratio had been declining for ten consecutive days, reaching a three-month low on Binance. The metric, which measures the share of circulating supply held by exchanges, had not visited this level since 2016.