Kraken initiates a request to withdraw $1B worth of Ethereum: Report
Ethereum (ETH) investors are now considering Kraken’s big ETH withdrawal request as a black swan over the ETH price performance.
Kraken is a popular American crypto trade company. This crypto company stands at the third position in the crypto sector by 24 hours trade volume.
This exchange also provides crypto staking services for Kraken customers but just a couple of months ago suspended staking services for US-based customers citing enforcement action by the United States Securities and Exchange Commission (SEC).
At present, Kraken is holding 1.25 million ETH ($2.5 billion) staked on Ethereum, the top in the crypto sector.
Reportedly Kraken initiated a request to withdraw 551,000 ETH (valued at $1 billion). This amount of ETH is 65% of the total amount of ETH withdrawal requests.
Many experts noted that such data may badly impact the positive sentiment of Crypto traders, as a high amount of unstacked ETH will inject more ETH supply & further that may cause a downfall in trade prices.
Here the Bitcoinik team suggests that people should not consider these expert’s opinions as financial advice because these are their self consideration & expectation and the market doesn’t operate on behalf of the thinking of analysts.
Kraken vs SEC
In early February of this year, the US SEC agency slammed the Kraken crypto exchange over crypto staking services. The SEC agency alleged that Kraken’ violated Federal securities law with crypto staking services.
Because of a bad financial position & bad market sentiments, Kraken settled the case with the SEC agency & paid a $30 million fine.
At that time Kraken exchange confirmed that it will unstack all the ETH, belonging to the US customers, after Ethereum’s Shapella hard fork. So probably here Kraken will pay this amount of ETH to the US customers.
ETH price action
The current trade price of ETH is $2,115 & this trade price is 10% high over the last 24 hours’ trade price.
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