Ethereum has recorded impressive gains in recent days as it has returned more than 51% to its investors in 2021 alone.
The world’s utility crypto outperformed Bitcoin (30%) on its year to date performance amid record-buying pressure from institutional and retail investors.
However, at press time, Ethereum traded at $1,175.50 with a daily trading volume of $40.2 Billion. Ethereum is down 2.47% for the day. It presently has a market value of $134.2 billion.
Glassnode, a crypto analytic firm, revealed:
“Ethereum Percent Addresses in Profit (1d MA) just reached a 2-year high of 99.293%. A previous 2-year high of 99.277% was observed earlier today.”
- Metric Description: The percentage of unique addresses whose funds have an average buy price that is lower than the current price.
“Buy price” is here defined as the price at the time coins were transferred into an address. Only Externally Owned Addresses (EOAs) are being counted, contracts are excluded.
Previous 2-year high of 99.277% was observed earlier today
— glassnode alerts (@glassnodealerts) January 8, 2021
Before Ether’s break above the $1,000 mark, recall that a highly respected crypto strategist and crypto investor, Michaël van de Poppe, recently spoke on his outlook on Ethereum and how high the world’s most popular utility crypto could go.
In a YouTube interview seen by Nairametrics, the crypto expert spoke in detail on how Ethereum could breach its all-time high of $1,432.
- “Currently, we’ve got a clear block holding as support that we are actually holding as support and we can see that we are making higher lows, higher highs. There was the crucial level to hold at $530… What I want to see holding in general is this area around $530. If we do lose that, then we get the best entry zone that we initially made here, which is around $470, $490 to $450.”
He also spoke on why Ethereum’s recent breakout sets up the second-largest crypto for a move above its all-time high of $1,432.
- “Given that we are currently searching, even more, I have to redo the Fibonacci levels and then you can see that the next impulse wave is most likely somewhere in 2021, maybe Q1 2021. Already, we’re going to see a rally towards the all-time high. That’s going to be the next one.”
12.6% of Bitcoin supply moved at prices above $30,000
Bitcoin traded at $32,208.24 with a daily trading volume of $58.9 billion and a circulating supply of 18,611,475 BTC coins.
It’s now becoming certain that a significant number of investors are grabbing flagship crypto asset, Bitcoin, for wealth gains, as about 12.6% of Bitcoin supply is held by investors who bought at over a $30,000 price tag.
- Data retrieved from Glassnode reveals 12.6% of the Bitcoin supply (2.3 million BTC) was moved at prices above $30,000.
- This is substantial, given that $BTC crossed $30k just this year. It suggests that investors are injecting capital, and therefore confidence in further price appreciation.
12.6% of the #Bitcoin supply (2.3M BTC) was moved at prices above $30,000 USD.
This is substantial, given that $BTC crossed $30k just this year. It suggests investors are injecting capital, and therefore confidence in further price appreciation.
— glassnode (@glassnode) January 25, 2021
Also, the number of addresses holding 1,000 BTC just reached a new all-time high of 2,446.
What this means: Over the last 21 days, 141 new whale addresses with over 1,000 BTC were created, suggesting large entities are expecting a significant price rise for Bitcoin in the near future.
- The total amount of capital inflows into Bitcoin in the past 30 days (as estimated by the realized cap), is as high as the whole $BTC market cap in Sept 2017 and early 2019 at $70 billion USD.
Bitcoin is seeing the largest depletion of liquidity in years.
- Not only are funds being withdrawn from exchanges, but coins are continuously moving to strong hands.
- In the past 30 days, around 270,000 BTC moved to entities considered HODLers.
At press time, Bitcoin traded at $32,208.24 with a daily trading volume of $58.9 billion. It is down 0.50% for the day.
It has a circulating supply of 18,611,475 BTC coins and a max. supply of 21,000,000 BTC coins.
Chainalysis found that although retail traders are responsible for 96% of transactions, professionals move the bulk of the volume.
“Retail traders, whom we categorize as those who deposit less than $10,000 USD worth of Bitcoin on exchanges at a time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis.
“Professional traders, however, control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges,” it said.
The report continued by stating:
“Bitcoin moving from the investment bucket (or potentially even the lost bucket if the earliest adopters still have their private keys) into the trading bucket could become a crucial source of liquidity.
“However, one would expect this will only happen if Bitcoin’s price rises to a level at which long-term investors are willing to sell.”
Bitcoin: The good, the bad, the future
Bitcoin is the first successful global peer-to-peer cash implementation that lets everyone store and exchange value with others.
Cheers. Here’s to something we all know, maybe most of us but mostly, here’s to something some of us most likely want to deny; “Bitcoin has come to stay” and we must raise our glasses to the doggedness of all and sundry involved in the efforts to complement and consolidate the stability, acceptance, profitability, and growth of BTC world over.
In recent weeks, Bitcoin and holders have enjoyed over 8 percent increase in the prices of Bitcoin world over, justifying the decision to hold on to the digital currency and has, in turn, led to a spike in the acceptance, recognition, and investment of individuals and corporations in the digital currency. Going forward, with teeming interest in Bitcoin, it is imperative to educate enthusiasts and potential investors on and about the story so far and in tandem help inform better decisions as to the future of the ‘gold mine’.
On the surface, one of the many perks of BTC and/or cryptocurrency is the accessibility. Without any middlemen, government officials, monetary economists, and other intermediaries or regulators, such a system can operate. Essentially, Bitcoin is the first successful global peer-to-peer cash implementation that lets everyone, no matter who or where they are, store and exchange value with others.
However, the unregulated use of bitcoin itself and the possibility of leaving a holder legally unprotected should anything go wrong has been one of the major concerns in the global market. Secondly in the eventuality of a hard drive crash, or if a virus corrupts your data and subsequently corrupts the wallet file, Bitcoin held on such wallet will be essentially been “lost” with no way to recovering it. The coins in context will then be forever orphaned in the system, therefore, increasing the chance of bankruptcy for a wealthy Bitcoin investor.
Pros and cons of Bitcoin
- The most transparent financial system to date is Bitcoin. All over the planet, and where there is no banking system, you can make payments with Bitcoins 24/7.
- With Bitcoins, foreign money transfers can be quicker and cheaper than with conventional banking and services.
- Bitcoin is the only asset ever created that cannot be taken from you by force (if taken proper precautions). Often, BTC transactions are also not censorable, and no one can stop you from performing transactions.
- Bitcoin also has valuable business features, such as multi-signature authorization and accounting transparency. Multi-signature ensures that many individuals need to sign off on an invoice, which provides more security. And the very existence of a blockchain, where all transactions are public, strengthens a company’s transparency.
- Bitcoin is pseudonymous, and without any authentication or credit history, anyone can open their wallet through the internet. In under-banked regions and third world countries, it is particularly beneficial where most individuals are struggling to get access to capital.
- Bitcoins can be spent on a desktop device, cell phone, or debit card in the same way you spend conventional digital money.
- Bitcoins are deflationary, unlike fiat currencies, implying that their value is set to appreciate by default.
- The most portable asset ever produced is Bitcoin, which can be transmitted via satellite or even radio.
- Bitcoin has the most brand awareness, liquidity, the most integrated ecosystem, and most acceptance among numerous retailers and organizations compared to other cryptocurrencies.
- For small fee, regular retail transactions such as buying tea, groceries, or simply tipping someone online, the Lightning Network can be used for this.
- Bitcoin presents a programmable money principle that allows for more financial developments, such as “smart contracts.”
- By providing an alternative to people who mistrust their government, certain institutions, politicians, or simply believe in the power of decentralization, Bitcoin disrupts the monopoly of capital.
- When things go south, little or no regulatory oversight is needed.
- Despite attempts to allow offline Bitcoin transfers, the use of the currency still depends largely on the availability of the internet.
- As Bitcoin is still in progress, depending on mining efficiency and network congestion, the transaction speed and fees appear to differ.
- Converting Bitcoins to fiat requires payments that are often expensive.
- Bitcoins are not approved by many shops or service providers. The figure is rising, though.
- Bitcoin transactions are immutable, which means there’s no way to bring them back once the money leaves your wallet. While several reputation management tools are being created, the thing with Bitcoin is that there is no “buyer’s protection.” Conversely, since accepting BTC removes the risk of fraudulent chargebacks, it may help merchants.
- Many individuals are not prepared to assume full responsibility for their properties and are unable to safely handle their private keys. Beyond recovery, several private Bitcoin keys have been lost, thereby leading to Bitcoin’s deflation and value appreciation.
- A steep learning curve is given by learning all the latest ins and outs of the Bitcoin ecosystem. In most Bitcoin applications, the user interface is still not foolproof, and the network is not ready to support anyone in the world.
- Securing Bitcoin needs basic knowledge and understanding of cybersecurity. Although the network is practically unhackable, there are organizations and individuals that are trying to hack Bitcoin wallets.
- Bitcoin’s central philosophy goes against the most influential institutions, governments, politics, banks, regulators, and censorship, and before these players can tolerate or approve it, it is likely to face a lot of opposition.
The future we project
According to Coindesk, some economic analysts expect that a big shift in cryptography is coming in January 2021, as institutional capital enters the market. There is also the possibility of floating crypto on the Nasdaq, which will further give prestige as an alternative traditional currency that is powered by the blockchain. Some expect that a regulated trading platform is all that crypto needs.
Any of the restrictions that cryptocurrencies currently face, such as the fact that a computer crash may delete one’s digital fortune, or that a hacker may ransack a virtual vault, may be resolved in time through technological advances. What is more difficult to solve is the underlying paradox of cryptocurrencies the more common they become, the more regulated government scrutiny. They are likely to be drawn, eroding the essential premise of their life.
While the number of merchants embracing cryptocurrencies has risen gradually, they are still very much in the minority. They must first gain widespread acceptance among consumers for cryptocurrencies to become more widely used. However, except for the technologically adept, their relative difficulty compared to traditional currencies would probably discourage most individuals.
A cryptocurrency that aspires to be part of the mainstream financial system may have to follow widely divergent requirements. It will have to be mathematically complex (to deter fraud and hacker attacks) but easy to understand for customers; And maintain user anonymity without becoming a backdoor for tax evasion, money laundering, and other nefarious activities; decentralized yet with sufficient customer protections and security. Since these are enormous requirements to meet, the most common cryptocurrency will probably have attributes in a few years between highly regulated fiat currencies and the cryptocurrency of today? Although that possibility looks distant, there is little doubt that the success (or lack thereof) of Bitcoin in coping with the difficulties it faces as the leading cryptocurrency at present will decide the fortunes of other cryptocurrencies in the years ahead.
It might be wise to handle your ‘investment’ in the same way you would treat any other highly risky enterprise if you are considering investing in cryptocurrencies. In other words, realize that you run the risk of losing the bulk, if not all, of your investment. As previously mentioned, aside from what a buyer is willing to pay for it at a point in time, a cryptocurrency has no intrinsic value and have your share in the digital economy.
$70 billion lost in Crypto market amid rising U.S dollar
Other leading crypto assets including Ethereum, Cardano, Litcoin, Chainlink, Polkadot, and Stellar lost more than 8% in value.
The crypto market just lost about $70 billion, as significant selling pressure from crypto sellers pushed the value of cryptocurrencies lower across the market spectrum amid the rising U.S dollar and some profit-taking.
- The global crypto market value is $930.47 billion, a 5.61% decrease over the last day.
- The U.S dollar was fired up as it recorded impressive gains at the Tuesday trading session in London taking into account some investors are fast becoming jittery on rising COVID-19 caseloads globally.
- At press time, the U.S. Dollar Index that tracks the greenback against a basket of major currencies ticked up by 0.20% to 90.555
At the time of drafting this report, about $70 billion in value was virtually wiped out, taking into account the flagship crypto, Bitcoin, the dominant player in the crypto market, lost as much as $2,000, according to data retrieved from Coin360.
- The total crypto market volume over the last 24 hours is $131.42 billion, which amounts to a 2.07% increase.
- The total volume in DeFi is currently $15.68 billion, 11.93% of the total crypto market 24-hour volume.
- The volume of all stable coins is now $105.17 Billion, which is 80.03% of the total crypto market 24-hour volume.
Bitcoin’s price is currently $31,398.04.
- Bitcoin’s dominance is currently 62.74%, a decrease of 0.01% over the day.
Other leading crypto assets including Ethereum, Cardano, Litcoin, Chainlink, Polkadot, and Stellar lost more than 8% in value.
Crypto experts interviewed by Nairametrics are saying that a market correction was long overdue after the overextended bullish move.
The bearish trend prevailing at the bitcoin market is largely attributed to a significant amount of profit-taking in play, coupled with the strong rebound in the U.S dollar