Taking a look at where Bitcoin and Ethereum stand 100 days following the meltdown in May.

 81 Interactions,  2 Today

Less than four months ago, the majority of the crypto-biggest space’s altcoins were persistently setting new highs one after the other. However, the market turned brutal one lovely day in mid-May, with most crypto-assets losing over half their value.

Well, a hundred days have passed since the crisis on May 19, and the market appears to be on the verge of completing a full circle.


Making sense of the conflicting numbers

Bitcoin’s price, at press time, was 28% away from its $64k ATH while Ethereum’s price was merely 14% short of its $4350-benchmark. Interestingly, over the past week, Ethereum’s price has seen a 14.25% pump while Bitcoin’s price deflated by 0.5% over the same timeframe.

Source: CoinMarketCap

Over the last couple of years, the market has scrupulously pumped and dumped together. One coin has always managed to take the lead and other coins have historically followed suit. Earlier this year, for instance, BTC was the first one to climb to new highs.

Other altcoins including Ethereum eventually ended up reciprocating congruent trends.

So, who’d lead the rally this time?

BTC and ETH appeared to be strongly dependent on each other’s price swings at the time of writing. Having said that, the market’s major coins had a 0.81 positive connection. To a large extent, Ethereum trading at its 3-month high ($3.5k) at press time signalling that it had already taken control of this rise.

See also  Elon Musk and buy the Bitcoin rumour: No One Person Should Have That Much Power

Furthermore, the 1-month realised volatility spread for ETH-BTC and 1-month implied volatility spread for ETH-BTC confirmed the aforementioned scenario. When both of these indices have climbed in the past, Ethereum has been able to exceed BTC in terms of volatility by making higher highs and lower lows.

Right now, both the IV and RV have seen notable upticks, thereby giving ETH a positional advantage.

Source: Skew

Bitcoin has evidently not been able to assert its dominance in the space like before. However, Ethereum has been able to make up for the same. In mid-April, for instance, the market cap dominance percentage of Bitcoin and Ethereum revolved around 50% and 15%. However, the same were down to 42% and 19.2%, respectively, at the time of writing.

It is worth noting, however, that Bitcoin has not been behind on all fronts. Take, for example, the daily transfer value. The transfer value on the base layer of the BTC blockchain amounted to $82.48 billion/day over the past week, as shown in the attached graphic. On the other hand, Ethereum witnessed statistics of $6.37 billion/day.

See also  This is a ‘very strong sign of...' according to a Bitcoin analyst.

Despite the fact that Bitcoin has already surpassed its April levels, it should be highlighted that Ethereum is only at par with its levels from four months ago.


Source: Glassnode

The ultimate essence of the 100-day waiting period

The farther an arrow travels, the more it is pushed behind before being released from the bow’s elastic arc. As a result, it might be claimed that these hundred days were crucial for the market to take a breather and prepare for the forthcoming bullish period.

As a result, practically all cryptos are now in a better position than they were in May.


Subscribe to our newsletter


Leave a Reply

Your email address will not be published. Required fields are marked *