Euphoria Back in the Market? Bitcoin to Hit $11,000 But Ether is Struggling This Time
The leading digital currency is approaching the levels seen right at the beginning of this month before we went down under $10,000 to hit as low as $9,800.
In a bullish start of the week, bitcoin first hit $10,750 yesterday, and now today, the crypto asset recovered some more and went further up to as high as $10,945 on Bitfinex, for now.
At the time of writing, BTC/USD has been trading at $10,900 in the greens, with real trading volume also slowly climbing to $1.9 billion. The greens have also turned market sentiments from “fear” to “neutral.”
Ether’s Lack of Upside
This time, Bitcoin is leading with Ethereum slow on the uptake, barely in the green at $375.
Just like Ether’s gains have been attributed to the success of DeFi, the underperformance is linked to DeFi as well. Meanwhile, with the Ethereum network already clogged up, the trading activity across DEX will suffer yet again because of the elevated fees.
“This double edged sword notion is nothing new,” said Denis VinoKourovo of London-based broker Bequant but noted, with Ethereum 2.0 on track for a November 2020 launch, it “may soon cause a bit of a stir in the derivatives market place.”
While the much-needed upgrade is on track, Ethereum Foundation also announced the impending launch of a second parallel testament called Spadina, which will run alongside the currently active Medaala testament.
The second “dress rehearsal,” Spadina has a mainnet like configuration. It will last for three days, giving everyone another chance to go through the process of deposits and the launch of the genesis block. VinoKourovo added,
“If markets are indeed underpricing the success of Ethereum2.0 launch, then vol spread between Ethereum vs. Bitcoin will narrow, as it stands 1m IV ETH vs. BTC is 77% vs. 55%, whereas 6m out the same spread is at 82% vs. 72%.”
Rest of the Market
Just like Ether, DeFi tokens aren’t feeling as euphoric either.
In the DeFi space, bZx Network is currently down 22%, which has been because of yet another hacking that resulted in the theft of $8 million worth of cryptocurrency.
Other notable losers include RUNE (8%), CRV (7%), SUSHI (5%), SNX (4%), and COMP (2%).
Meanwhile, YFI is trading in the green by 6.42% at $41,843, along with LPC (3.59%), BAL (3%), UMA (2.35%), and CREAM (1.24%).
But it is KIMCHI, which is leading with 46% gains and YAMV2 with over 13%.
Among the top digital assets, Bitcoin Cash (BCH) is up by 4.43% and Crypto.Com Chain (CRO) 3.73%.
Meanwhile BNB (-8.47%), Tron (-4.60%), and LINK (-2%) are recording losses.