Bitcoin (BTC), Ethereum (ETH): 50% drop.

Bitcoin and Ethereum have continued to decline over the past five weeks. The cryptocurrency industry’s smart digital assets compared to capitalization are currently down 50% from all-time highs posted in 2021.

Bitcoin pulls ether down

The king of bitcoin cryptocurrencies continues to dominate the cryptocurrency market with a dominance of about 41%. It represents a total capitalization of $ 628 billion. The asset is currently trading around $ 30,000, a level not seen since July 2021, according to crypto data aggregator CoinMarketCap.

The value of Bitcoin fell by 51%, with the latter setting a record high of almost $ 70,000 in November 2021.

Ether, the second most popular cryptocurrency, also fell. The dominance of this asset is just under 20% of the total cryptocurrency market capitalization. This amounts to $ 289 billion. Ether is currently worth $ 2,200, which is about 50% of the former high level in November 2021. At that time, it was close to $ 4,900.

The fall of bitcoin and ether alerts investors

Large capital inflows usually signal an upcoming bear market. This is because investors move their assets on exchange platforms, to sell them against more commonly known stable investments ” coin stable “.

On the other hand, a larger capital outflow can be a bullish signal. In this case, investors transfer their assets to a so-called “cold” portfolio for long-term investments.

According to data from Glassnode, bitcoin has declined by 15% over the past seven days also relative to net exchange-based transfer volume. On May 6, there is a net inflow of about 12,246 bitcoins. That’s about $ 402 million at the current price.

This month’s net ether transfer volumes show that many investors have withdrawn their holdings from exchanges. This is generally considered to be a bullish signal for an asset.

This contradiction between the recent bearish price of Ether, combined with large exits from the exchanges suggests that other forces may be playing for the latter. On the one hand, ETH ether holders can withdraw unwanted ether from exchanges. Here’s to lodge them in stacking and so participate in the Ethereum ecosystem merger planned for the third quarter of this year.

DeFi Ethereum business, advantage

Investors could also sell their ether on various decentralized exchanges (DEXs) around the DeFi world. For example, the amount of ether trading on Coinbase and Deisi Uniswap’s large decentralized exchange plan is not the same. The latter reports a trade volume of $ 1.63 billion over the past 24 hours. While Coinbase says about $ 500 million.

In the absence of decentralized exchanges, ether could be deployed in lending or lending protocols. The latter could also be used for editing stable tires or more activities within the decentralized finance, but which do not result in the sale of the asset.

By comparison, the same level of activity within the decentralized finance for Bitcoin cannot be presented.

Conclusion

Some analysts and traders fear that the price of bitcoin will continue to fall. The price could approach 20,000 dollars. While bitcoin and ether have seen a huge drop in the last seven days, other assets are positive. Tron (TRX) is up 32.8%, Algorand (ALGO) is up 33.2%, Curve (CRV) is up 20.9% and Helium (HNT) is up 13.8%.

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Emile Stantina

Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was obvious. The blockchain is definitely the universal tool of tomorrow.