Bitcoin (BTC), despite a hard weekend, has seen a sharp drop in price and huge sales. However, Ethereum (ETH) continues its strong performance, as it has done since October. Arcane Research’s weekly update shows that the ETHBTC pair reached its highest level since May 2018 reaching 0.085 BTC, seeing possible signals of maturity and an upcoming alt-season.
ETH is expected to be stronger than bitcoin in 2021. The cryptocurrency could be signaling its maturity as it sees higher lows –compared to BTC– than it did in 2017 and 2018.
However, Arcane Research noted that back in 2021 and 2018 the strength of ETH and altcoins’ performances in periods when BTC saw lows also signaled lower prices to come, so a similar scenario could happen during 2021’s fourth quarter.
The current ETHBTC pair peak is similar to the one seen in May, which was followed by May 19th’s crash during massive liquidations and new buyers panic –which some users called the second worse day ever for Ethereum, although similar phenomenons had happened in earlier years–. The ETHBTC and Bitcoin then experienced another surge at the start of September.
Furthermore, we could be facing froth in the market as altcoin’s strength has signaled before.
Ether fell again on Saturday. However, it surged to the previously mentioned high of 0.086 Bitcoins during Sunday. The price dropped 5.5% on Monday to $3,965, and overall, it traded down by 0.51% in the past week compared to BTC’s 10.06% decline.
The Ethereum price today is at $4,352.74, an increase of 2.93% over the previous day, and more than 24% above the lowest. Even though it’s 9% away from its all-time high, it is also 496% up in comparison to 2021’s early days. ETH shows a daily trading volume at $23,566,690.676 in 24 hours and a market value of $512 648,545,331.
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Bitcoin’s dominance sees new lows
Today, Bitcoin’s dominance is 40.65%It has not seen an increase in the number of days. As it witnessed its latest bloodshed, the Bitcoin price had dropped to 40% by December 5. BTC’s dominance also dropped in May and September, but hasn’t seen any other lows since May 2018.
As the crypto market started to fall on Friday –with 372,000 liquidated crypto accounts by Monday totaling $2.3 billion-, Saturday’s early morning saw bitcoin drop $10,000 in price, going from around $57,000 to $47,000.
The weekend’s drop in the market reached $14,000 and experts did not find any clear reasons. But traders suggest a link between the Omicron variant fear and the exaggerated moves of the markets due to reduced trading liquidity.
BTC’s November record-breaking price is now down $21,000 but it has risen by over 75% overall in 2021. BTC has returned to $50,000 and is now worth more than 44%. The total cryptocurrency market capital has increased 5% to $2.5 Trillion.
Some expect a hard end of the year for Bitcoin as it has not shown its regular strength, but at the same CNBC quoted Will Clemente, insights analyst at Blockware Solutions, who thinks these dynamics are “healthy and show supply continues to move to long term investors” and BTC could actually see a new bull run at the start of next year:
There’s a reasonable case that we could see the opposite effect heading into Q1, as funds are willing to take on more risk for the new year with fresh profit and loss, … This effect assisted in bitcoin’s massive move in January 2021.
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