As the price of BTC remains lower, a possible benefit is a reduction in the volatility of cryptography.
The market is clearly choosing other digital assets over bitcoin. Ether hits a fresh record price and BNB dominates.
- Bitcoin (BTC) trading around $52,612 as of 21:00 UTC (4 p.m. ET). Slipping 4.7% over the previous 24 hours.
- Bitcoin’s 24-hour range: $52,889-$55,233 (CoinDesk 20)
- BTC below the 10-hour and 50-hour moving average on the hourly chart, a bearish signal for market technicians.
Bitcoin had its fourth day of weak market action. The oldest cryptocurrency in the world was experiencing some selling action to date, causing the price to drop to $ 52,612
Pankaj Balani, CEO of the Delta Exchange crypto derivative platform, notes that when looking at a larger trading chart time frame, the outlook starts to look low for bitcoin. “BTC fell below the 50-day moving average support it maintained during this rally, and it looks like there is more downside here,” Balani told CoinDesk.
As a result of last weekend’s bitcoin eviction, the BTC spot price is now below its 50-day moving average, the first time since October 2020, according to TradingView daily charts.
“We can see a sharp jump in bitcoin, but until it exceeds $ 60,000, the possibility of a bull trap cannot be eliminated,” added Balani.
Perhaps a benefit of this price drop, at least from the standpoint of the value reserve that many bitcoin proponents advocate, is that BTC volatility continues to decline slowly. Bitcoin’s annualized 30-day volatility, as measured by CoinDesk Research, was 48.9% on April 21, a long and slow drop from the 2021 high of 112.8% 30-day volatility on February 9.
As a result, traders are clearly focused on other blockchain-based assets in the crypto ecosystem, said Balani of Delta Exchange. “We are seeing strong signs in [altcoins]; ether is the focus here. “
Hot melting ether performance as an alternative cryptographic resource
Ether (ETH), the second largest cryptocurrency by market cap, rose on Thursday, trading at around $ 2,515 and up 3.7% in 24 hours from 21:00 UTC (16:00 ET).
After the crypto crash last weekend, when the market experienced a record $ 10 billion in settlement in the derivatives market – the cryptographic equivalent of a margin call that pushed the crypto market down – the price performance of the ether has been going as gangbusters. The record price for ether is now $ 2,645.14, according to data from CoinDesk 20, and that was achieved on Thursday.
Since the eviction last weekend, when ETH was at a low of $ 2,067, according to data from CoinDesk 20, the price has gone up 21% so far. In the same period, bitcoin fell 2%.
Joel Kruger, cryptocurrency strategist at LMAX Digital Exchange, says market players are probably getting more sophisticated about investing in non-bitcoin assets, leading to a strong purchase of ETH. “As traditional market participants become more familiar with the space, they are slowly discovering the value proposition that extends beyond bitcoin,” Kruger told CoinDesk.
Gary Pike, director of sales and trading at the B2C2 liquidity cryptography provider, says that the attention given to Coinbase’s direct listing and non-fungible tokens, or NFTs, has many people researching blockchain outside of bitcoin and investing money in these nascent technologies.
“The NFTs and Coinbase [listing] brought more people into the ecosystem than previously did not participate, even though they knew about bitcoin,” said Pike.
The price of Bitcoin has remained stagnant this week and its domain has dropped below 50% for the first time since 2018. Meanwhile, alternative cryptocurrencies, such as the BNB token from the Binance crypto exchange, are making significant gains in market share The crypto domain it is a measure of your market share as a percentage of the larger ecosystem of digital assets.
Since the beginning of 2021, BNB, which can be used at Binance to pay trading fees, has risen from 0.71% of market dominance on January 1, 2021 to 4.1% so far, an increase of five times. Sean Rooney, head of research at Valkyrie Investments, says that increasing BNB’s dominance signals further development of decentralized finance, or DeFi. “BNB can benefit from an explosive DeFi sector,” he told CoinDesk.
BNB operates on Binance Chain, a blockchain development platform that is a much smaller rival to Ethereum. Rooney noted that “ETH also benefits from this” because the increase in BNB’s dominance brings new users interested in the programmable money aspects of these platforms.
Digital assets on the CoinDesk 20 are mostly red Thursday. Notable winners as of 21:00 UTC (4:00 p.m. ET):
- The Nikkei 225 index in Asia ended the day up 2.3%, led by a 6.3% gain in retailer Rakuten and a 5.5% jump in transportation firm Kawasaki Kisen Kaisha.
- Europe’s FTSE 100 closed in the green 0.52% as the European Central Bank kept interest rates unchanged, with traders signaling this as a favorable market condition.
- The United States’ S&P 500 index fell 0.80% as investors hit the sell button on the news U.S. President Joe Biden plans to introduce a higher capital gains tax proposal for some income brackets.
- Oil was up 0.90%. Price per barrel of West Texas Intermediate crude: $61.61.
- Gold was in the red 0.50% and at $1,784 as of press time.
- Silver is falling, down 1.6% and changing hands at $26.10.
- The 10-year U.S. Treasury bond yield fell Thursday to 1.545 and in the red 0.78%.