4,000 ETH Worth $1.6 Million Deposited at Binance Right Before the 4.5% Drop in Price
Over the weekend, the crypto market enjoyed a green sweep across the board.
Bitcoin jumped past $14,000, marking a 34-months high on the 12th birthday of its whitepaper. Following BTC, altcoins also recorded some gains, with ETH going back above $390.
However, today, Bitcoin’s price went down from about $13,800 to as low as $13,200. A fall of more than 4% in the price of BTC has altcoins in red too.
Driver for today's bitcoin drop: rumors of Huobi c-level employee arrested. Rumor denied, market bounced back partially. https://t.co/OOXCniC5Vn
— Alex (@classicmacro) November 2, 2020
Corrections are to be expected after BTC rallied from $10,580 to the highest close ever. Although market participants believe this bull cycle is nothing like 2017 because the crypto space is maturing, adoption is rising, and infrastructure is improving; pullbacks happen all the time. So did nine times, of about 30%, in 2017.
Meanwhile, the second-largest cryptocurrency Ethereum (ETH) started the day on a bullish note as it moved past $400 only to get down to the $382 level, back to the weekend level before it started moving up.
Interestingly, before the breakdown, 4,000 ETH, worth $1.6 million, were deposited at the leading cryptocurrency exchange Binance.
— CoinMetrics.io (@coinmetrics) November 2, 2020
At the time of writing, ETH/USD has been trading at just above $385.
“Surprise surprise, eth/btc rekt, since losing that key 31k sat support and now in the 27k sats zone, however still thinking it goes a bit lower before i'll be looking for any bottoms. Getting close now but BTC still king for now IMO,” noted one trader.
Ethereum usually leads the cryptocurrency rallies, but this time, Bitcoin is outperforming the altcoins.
As we saw with year-to-date returns, ETH recorded 192.5%, while BTC only returned 85% YTD. But this month, the momentum shifted, and Bitcoin made a new 2020 high and then broke the 2019 high as well. BTC is up 26.63% in the past 30 days, while ETH’s returns have been only 10.5% during the same period.
“There's a lot of ETH bearishness recently,” noted quant trader Qiao Wang.
“I'm also of the view that ETH will underperform BTC in the next bull cycle. But only slightly. And I want to explore arguments for why this thesis may be wrong, i.e., why ETH could outperform BTC.”
According to Wang, a significant percentage of the population does not get the “digital gold” narrative, and they are more comfortable with the “tech platform” that ETH represents.
“Most of this new inflow from tech people is likely going to be in ETH because ETH is the best index play,” said Wang adding, “it also takes a lot less money to move ETH than to move BTC given their relative size.”