Bitcoin (BTC) Price Dump to $8,700 Explained by Coinmetrics

News
Mon, 05/25/2020 - 10:59
article image
Vladislav Sopov
The Bitcoin (BTC) price has dropped below $8,700, printing more than a 7% loss in a few hours. Coinmetrics data has revealed the market processes behind it
Bitcoin (BTC) Price Dump to $8,700 Explained by Coinmetrics
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents

Jon Geenty, a data scientist from the Coinmetrics on-chain analytical team, posted a chart of BTC/USD trades initiated on major exchanges at the same time the Bitcoin (BTC) price plunged.

Coinbase, leader of a painful sell-off

Typically, rapid price drops correlate with liquidations on Bitcoin (BTC) derivatives trading platforms. However, Mr. Geenty has highlighted that there is a different story at play here.

According to data from his team, the most devastating sell-off took place on spot trading markets on the Coinbase exchange. Other platforms also participated but their shares were insignificant.

It is interesting that the brightest ‘buy the dip’ attempts were demonstrated by Kraken and Bitstamp traders.

It was mentioned in the comments of the analysis that the sell-off coincided with the daily and weekly close.

Second successive sell-off detected

Five days ago, the Coinmetrics team released the holistic report, ‘Market Insights: Spotting and Exploiting Market Volatility’, which attempts to track the trading processes associated with the Bitcoin (BTC) price collapse that occurred on May 9, 2020.

On that day, crypto markets tanked 16% in a few hours while the first 10% drop took 10 minutes. Some traders admitted they felt ‘Black Thursday Vibes’.

Coinmetrics revealed that the drop was also caused by a trade on a single exchange, Gemini. A whale from the Winklewosses’ platform sold an abnormally large amount of Bitcoin - 2,500 BTC.

Similar to today, Bitstamp and Kraken traders were the most active in the short ‘buy the dip’ phase.

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

News
Fri, 01/15/2021 - 18:02
article image
Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents

While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)