ETH Rips to Jan 2018 High As The Market Rotates Bitcoin Profits into Ethereum
After Bitcoin went ballistic over the course of the last three months, now it is time for Ethereum.
The second-largest digital took just one day to go from $750 to $1,170, a level last seen in January 2018. ETH is now just 38.75% away from its ATH at about $1,600 on Coinbase.
ETH ETH 1.64% Ethereum / USD ETHUSD $ 4,135.70
$67.831.64% Volume 25.36 b Change $67.83 Open $4,135.70 Circulating 118.62 m Market Cap 490.57 b 1 d Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019 2 d Coinbase Cloud wanting to be the “AWS of Crypto,” Amasses $30 Billion in Staked Assets 2 d NFT Mania: Adidas Buys a Bored Ape, Animoca Brands Partner with BSC, Blockchain.com to Make NFT as Accessible as Crypto and other altcoins have been lagging behind Bitcoin’s bull market BTC 0.09% Bitcoin / USD BTCUSD $ 48,951.64
$44.060.09% Volume 37.2 b Change $44.06 Open $48,951.64 Circulating 18.89 m Market Cap 924.81 b 1 d Bitcoin A Smart Hedge For Investors, says Chairman of $100 Billion Starwood Capital Group 1 d Bitcoin Miners HODLing: Marathon Mines 53% Less BTC in Nov., Hut 8 Producing Each BTC at A Cost of $3k 1 d Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019 which finally caught up to the crypto leader.
“What we’re seeing is the standard moving of the crypto markets from Bitcoin to the Altcoin market led by Ether,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “This rotation happens usually when Bitcoin has a large rally and investors rotate profits” into other digital coins, he said.
According to Ryan Watkins of Messari, if bitcoin is like gold, ETH is like money, “the most liquid asset in Ethereum’s on-chain economy that is demanded for a wide range of economic uses.”
These gains came while Bitcoin started consolidating, going to about $28,550 after making a new ATH at $35k. In the past 24-hours, Ether recorded more ‘real’ volume at $15 billion than Bitcoin’s $12.53 billion, as per Messari.
“A remarkable bullish BTC crash, making ETHBTC pop. All alts ripped,” noted trader and economist Alex Kruger.
“Looks like a trend change. Think it is. Good to internalize that with dominance at 70% a small outflow from bitcoin to ethereum and alts makes sysmic waves.”
Just last week, as we reported, Bitcoin dominance hit 73.6% last seen in July 2017. Bitcoin hasn’t reached these high levels of dominance since ICO bubbles. Following the rally in ETH and other major altcoins, today Bitcoin’s dominance dropped to 68%.
For now, the market has given back some of these crazy gains. After dropping to about $885, ETH is now back above $900 while the funding rates on derivatives go crazy.
— glassnode (@glassnode) January 4, 2021
“Grayscale's ETHE subscriptions will reopen this week. Should see heavy inflows,” further noted Kruger.
ETHE is currently trading at a premium of over 103%.
While DeFi TVL rose to new highs of $17.87 billion thanks to a jump in the prices of cryptocurrencies, the ETH locked in the space has come down to under 7 million ETH.
Meanwhile, the ETH locked in the deposit contract for ETH 2.0 for staking has gone above 2.2 million ETH worth over $2 billion.
Ethereum undid a three month slide against bitcoin … in one day. pic.twitter.com/3HROibA0s7
— Alex Krüger (@krugermacro) January 4, 2021