14 Jul 2020 #Ethereum
Exchange balances for ETH and BTC move in opposite directions in a new insight into investor sentiment. Ether (ETH) is trading at its highest since before the March coronavirus crash, but data suggests that investors have little interest in holding the second-largest cryptocurrency by market capitalization.
Uploading findings using on-chain monitoring resource Glassnode on July 10, one trader noticed that Ether exchange balances remain high, while Bitcoin (BTC) balances have dropped considerably.
According to the unverified data, since March, ETH balances on exchanges have continued to trend upward overall. At the same time, BTC has been leaving exchanges en masse over the past three months.
“Ever since the Black Thursday crash, Bitcoin balances on crypto exchanges have been falling quite fast. On the other hand, Ethereum exchange balances continue to remain relatively stable,” the trader summarized.
The phenomenon could have several implications. Coins on exchanges are more vulnerable but quicker to trade, suggesting that owners store them there to sell at short notice.
As Cointelegraph reported previously, BTC traders have shown a preference for saving in recent months, rather than selling or trading.
On Ethereum, the network for which Ether is the native token, the current DeFi trend may also be influencing investors. The decentralized finance sector has sparked a token boom and associated trading, and as ERC-20 tokens on Ethereum, ETH is required for transactions.
ETH would make a suitable “home” asset for DeFi traders given its recent low volatility in the run-up to its fifth birthday.
Meanwhile, ETH/BTC correlation has risen in the short term, while a longer trend has seen ETH remain fairly constant as a percentage of BTC price, data from Skew shows.
Meanwhile, talk of a new “altseason” — a period of growth and profitability in altcoins — continues to gather pace. Among those forecasting a new alt gold rush is Peter Brandt, the trading stalwart who eyed ETH gains over BTC this week.
“Most alts should gain on #bitcoin in near future,” he summarized.
Zooming out beyond DeFi, major altcoins still remain at a fraction of their all-time highs from more than two years ago. ETH once traded at almost $1,400, but has failed to recapture more than 20% of those levels since. BTC, on the other hand, currently sits at around 50% of its all-time highs.
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2021 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.