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 3.48% Ethereum / USD ETHUSD $ 2,015.67
$70.153.48% Volume 17.77 b Change $70.15 Open $2,015.67 Circulating 120.85 m Market Cap 243.59 b 4 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 4 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 4 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 and other altcoins have been lagging behind Bitcoin’s bull market BTC 3.28% Bitcoin / USD BTCUSD $ 30,047.55
$985.563.28% Volume 34.1 b Change $985.56 Open $30,047.55 Circulating 19.04 m Market Cap 572.24 b 4 mon SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 4 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 4 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 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