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

News
Mon, 05/25/2020 - 10:59
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
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.

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.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

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.)