Ethereum Underperforms BTC By Over 77% Since BitMEX Launched ETH Perpetual Swap


Ether in the green by 7.30% at $223

In last over a year, Ether performed worse than its peers BCH and LTC along with EOS and Tezos (XTZ)

The second largest cryptocurrency is back in the green by a good 7.30 percent while trading at almost $224, at the time of writing.

However, this surge is not backed by a strong volume. The trading volume registered by ten exchanges with the real volume is just $230 million, per Messari.

The price of Ether has made a fine recovery from its bottom, hit in mid-December at about $75.

In late June, Eth reached as high as $350, only to drop down to $185, wiping out almost half of the gains.

Till date in 2019, Ether price has surged only 66 percent in comparison to more than 170 percent of Bitcoin.

Ethereum, as a matter of fact, has under performed Bitcoin by as much as 61.63 percent in the past 1 year.

ETH/BTC chart, Source: TradingView

This fall could be attributed to a number of issues including Ethereum 2.0 being “inevitably” delayed, the extinction of the ICO market and being replaced by IEOs, and DeFi falling flat.

Is BitMEX ETHUSD Perpetual Swap The Real Culprit?

However, from a market microstructure perspective, it has underperformed Bitcoin by a staggering 77.5 percent since ETH perpetual swap was launched on August 2, 2018, noted analyst Rptr45.

As can be seen in this chart, a drastic drop could be seen in Ethereum price against BTC since early August.

About a year back, BitMEX introduced the new ETH/USD perpetual swap, its price pegged to the underlying spot price, with a maximum of 50x leverage. The product was a hit as just about a month later, its 24h volume stood at 66,467 BTC, making it the most heavily traded USD pair globally.

However, in that period, the price of Ether dropped nearly 60% in the USD market in comparison to BTC/USD’s 19% drop.

But the fact that ETHUSD swap derivative derives its price from the spot ETH prices and not the other way round, it could be counter-argued that ETH price is not connected with trading on BitMEX.

However, the price of the derivative at the BitMEX exchange can influence the underlying spot prices though arbitrage bots.

Though it is hard to ignore the connection, there’s no clear evidence that the ETHUSD swap has affected ETH price.

Ethereum Doing Worse Than Its Peers

Ethereum meanwhile, is also doing far worse than its peers like Bitcoin Cash (-41%) and Litecoin (16%), along with Cardano, XLM, NEO and others.

Moreover, Ether is performing worse than EOS and Tezos (XTZ) which have higher betas.

“Perhaps the best catalyst would be no CME futures coupled with a BitMEX close to make it more difficult to short,” said Rptr45.

Ethereum (ETH) Live Price

1 ETH/USD =$3,532.0485 change ~ 1.76%

Coin Market Cap

$408.93 Billion

24 Hour Volume

$15.35 Billion

24 Hour VWAP

$3.49 K

24 Hour Change

$62.13

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