7 January 2021
Bitcoin Charge Slows Down as Surge Pricing of Bitcoin (BTC) Tapers Off after Hitting All-Time High
Over the last weekend, the world’s largest cryptocurrency Bitcoin made steep advancements northwards hitting a new all-time high above $34,000 on Sunday, January 3.
As we entered into the new year, the BTC price continued to rally further supported by supply crunch and massive exchange outflows during the week’s time. Over the last month, the BTC price surged nearly 70% to hit its new all-time high on Sunday.
After this unprecedented bull run, Bitcoin finally entered a steep correction on Monday, January 4. Interestingly, Bitcoin (BTC) registered its sharpest fall since March 2020 losing $5500 of its price or nearly 15% of its price in a matter of a few hours.
The latest price drop came amid the BTC whales in the Asian market selling massive as Bitcoin was trading at a premium on some of the South Korean exchanges. As a result, BTC whales started depositing in massive numbers on Korean exchange Bithumb solely with the purpose of profit-booking or liquidation.
The Asian whales were thus all set to make the most of the “kimchi premium” for BTC on Korean exchanges.
However, the scenario was similar across other exchanges as well. Nearly $190 million in long positions were liquidated at the Binance crypto exchange in a matter of just 10 minutes.
Just as the BTC price hit an intraday low of $28,772, the United States – the mother of all markets – was still in the dark hours. Soon as the U.S. market opened up for the first Monday of 2021, the dips were absorbed as the BTC price went back once again above $30,000 levels.
At press time, Bitcoin (BTC) is trading at $34,495 with a market cap of $605 billion. Interestingly, Bitcoin failed to breach its market dominance of 73% and the latest price correction has again pushed it to 68.4%. This resistance to the surge in market dominance is likely to work in favour of altcoins as per historical trends.
Ethereum Makes Swift Gains on Falling BTC Dominance
In the last 48-hours, Ethereum has made quick and massive advancements to the north moving all the way from $730 levels to above $1100 levels as of writing this story. At press time, ETH is trading at $1101 with a market cap of $125.8 billion.
Besides, the recent surge has also pushed Ethereum’s weekly gains above 50% making it the top performer in the top-ten cryptocurrency list. The Ethereum (EHT) price rally comes on the backdrop of several improved on-chain metrics for the cryptocurrency.
The aggregated daily volumes for ETH spot trading and ETH futures trading hit an all-time high, as reported by on-chain data provider Skew.
After falling continuously fro over the last few months, the ETH/BTC pair made a sharp reversal on Monday, January with ETH price moving past $1000. Later, the graph shot up further after the BTC price correction later in the day.
As we can see on Ethereum’s weekly chart below, the orange line below makes a sharp reversal after falling earlier in the week showing that ETH price is gaining a relative strength over Bitcoin.
The other developments relative to the Ethereum network include the surge in the ETH hash rate which has hit an all-time high above 300,000 GH/s. This suggests that the mining activity in Ethereum is very high at this point.
As per data from F2Pool, the Ethereum miners are making nearly three times more than Bitcoin miners. The 24-hour revenue for Bitcoin miners is currently at $26 where’s that for Ethereum miners is $70.0.
With the recent ETH price rally, the total value locked in DeFi has also surged to $18 billion. However, the Ethereum gas fee has also skyrocketed above 200 Gwei as the network faces congestion after the surge in network activity.