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Ethereum, Altcoins and Bitcoin: What’s Happening?

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Ethereum

It’s certainly is a sea of red in the markets. Lord Rothschild famously said to buy when there’s blood in the streets. However, we don’t think that time has come yet. ICOs, which raised money in Ethereum, are dumping their ETH. Most of these ICOs raised when ETH was $800 and higher from between late last year to early this year. The price was pushed further up due to demand created by regular traders who wanted to participate in the ICOs using the most efficient method of ETH. Most ICOs had the conversion rates of their ICO tokens pegged to the value of ETH making it easier for an investor to calculate his buy-in amount of the said tokens.

Now, some of these projects are cashing out to cover expenses that involve project development, operations, marketing and more. This has resulted in the concern we are now seeing of the bear market being dragged out longer than is necessary and with ETH continuing to drop in value.

Biswa Das, who runs cryptocurrency quantitative hedge fund BloomWater Capital, summarized the series of events as follows:

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Is Ethereum going to survive?

The current pressure from ICOs cashing out on their ETH has further put a load on the current crypto bear market. The total market cap has been shaky at levels around $200 Billion with each morning being a puzzle as to whether it will go lower or higher.

With respect to the continued dominance of ETH in the markets and smart contracts industry, more projects are springing up that were ironically funded through the platform. These projects of Tron (TRX) and Zilliqa (ZIL) aim at offering faster, efficient and more cheaper alternative platforms for developers to create DApps. Therefore, the rest of the year could be one of constant decline for Ethereum. As a matter of fact, some Wallstreet firms had already predicted the gradual downfall of ETH and have been shorting the digital asset.

Possible continuation of the bear market

Spencer Bogart of Blockchain Capital LLC is quoted as saying the pain might not be over in the cryptomarkets especially for ETH. ICOs will probably continue to liquidate a large percentage of the over $5 Billion they raised last year and early this year.

Perhaps this is why traders are preferring Bitcoin (BTC) over Ethereum – or any other Alts – during this bear market. What we have seen is that BTC has increased its dominance in the markets from 36% back in mid-May, to its current levels of 53.5% as investors look for a safe haven to ride out the current stormy market.

BTC has proven to be less volatile than Alts and even surpassing the Turkish Lira in terms of market stability. With lots of Wallstreet interest from CBOE and the Intercontinental Exchange with its Bakkt project, BTC might be the wisest option for traders to ride out the bear market.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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