Speculations of Facebook Buying Bitcoin (BTC)
Amid Crypto Market Volatility, Bitcoin (BTC) and Ethereum (ETH) Enter Correction But On-Chain Metrics Improves
Crypto market volatility has once again taken the center-stage as the world’s two biggest cryptocurrencies – Bitcoin (BTC) and Ethereum (ETH) – are down each by 4-5%. Bitcoin (BTC) has lost 4.09% and has slipped below $35,000 levels while Ethereum (ETH) is down over 5% from its new all-time high but continues to hold above $1300 levels as of writing this story.
The overall cryptocurrency market cap is also down by 4% partially holding up just above $1.0 trillion. But before we take a grasp f some of the top altcoin news, let’s check what’s actually happening in Bitcoin (BTC) and Ethereum (ETH).
HODLing Bitcoin (BTC) Getting Popular As Crypto Market Volatility Reduces
Before today’s price slip, Bitcoin (BTC) has consistently consolidating between $35,000-$36,000 levels over the last week. On-chain data provider Santiment suggests that HODLers are not willing to liquidate at the current stage and Bitcoin (BTC) might not correct much from the existing levels.
The dormant coins which have started moving when BTC surged past $40,000 levels have turned dormant once again.
On the other hand, smaller Bitcoin (BTC) whales i.e. the number of addresses holding more than 1000 BTC has hit a new all-time high. In 2021 so far 164 new such addresses have been added while the total number of addresses with over 1K BTC is now above 2400.
Another data from Glassnode suggests that the signs of Bitcoin (BTC) accumulation are very clear. Bitcoin is currently going one of the biggest liquidity crunches in years, as coins have been continuously moving to strong hands. Glassnode says that 270,000 Bitcoins (BTC) have moved into the hands of the HODLers just in the past 30 days.
On the other hand, the graph of Bitcoin price volatility against the S&P 500 index is currently at a multi-year low around the levels of 2012 and 2016, just before the Bitcoin (BTC) price rally. As per the Bitcoin price predictions for 2021, analysts expect BTC to hit $100K by this year-end.
The Grayscale Bitcoin Trust (GBTC) continues with its buying Bitcoin (BTC) mania! After adding around 10K BTC last week, Grayscale purchased another 16,244 BTC worth $590M on January 18 and an additional 8,762 BTC worth $305 million on January 20, as per data on bybt.com. Grayscale CEO Michael Sonnenshein said that apart from Bitcoin (BTC), institutions have also been diversifying into ETH and BCH.
The biggest news of the day is that trillion-dollar asset manager BlackRock is entering the Bitcoin market. The giant has filed with the U.S. SEC to offer cash-settled Bitcoin futures trading in its funds.
Ethereum Hits New All-time High Backed With Strong On-Chain Fundamentals
The world’s second-largest cryptocurrency Ethereum (ETH) made a strong move on Tuesday, January 19 surging all the way above $1400 and hitting its new all-time high of $1439. At press time, ETH is trading at $1373 with a market cap of $157 billion.
The ETH price rally comes on the backdrop of strong fundamentals as well as strong on-chain indicators. Just like Bitcoin, Ethereum has been moving off the exchanges. As we can see in the chart below, nearly 530K ETH coins worth $740 million have moved out of exchanges in a single day.
The Ethereum hash-rate has been currently at an all-time high whereas there’s a surge in the ETH active addresses while miner balances have declined, indicating bullish momentum ahead.
Fundstrat Global Advisors’ strategist David Grider has recent given a fresh Ethereum Price Prediction of $10,500 I.e. 7x from the current levels. Grider’s predictions are based on Ethereum network’s popularity anomy decentralized finance (DeFi) applications. He calls ETH the best risk-reward currently in crypto.
The Ethereum (ETH) staking in Ethereum 2.0 deposit contracts continue to surge further. The total amount of ETH staked has now past $4 billion. Grider believes that going ahead, the Ethereum 2.0 network upgrade will attain transaction processing capabilities similar to Visa and Mastercard.
Coming to altcoin news, Santiment points out altcoins with high whale activity in recent hours. This includes names like such as $ETH, $SNX, $YFI, $UNI, $COMP, and $BNT.
- $51 + 2.4%
- $51 + 2.4%