Why is Bitcoin rising while Ethereum isn’t rising (Why is Bitcoin surging)

08/13/2023 10:36 • AI Insights • 60 views

Why is Bitcoin rising while Ethereum isn’t rising? Why did Bitcoin drop below the $10,000 mark and then reverse the consolidation with a large bullish candlestick? Why is Bitcoin rising while Ethereum isn’t rising? Why did Bitcoin drop below the $9,000 mark but then rise nearly 50% within three days?

In the past week, due to the continuous decline in ETH prices, BTC experienced a short-term steep decline. According to Coinmarketcap data as of 11:05 am today (Beijing time), ETH is priced at around $9,380; since July 18th, ETH has dropped more than 90%. The total market value of mainstream cryptocurrencies is now $4.78 trillion, with a 24-hour trading volume of $1.697 billion and a growth rate of approximately 6% (source: CoinMarketCap).

With the influence of factors such as price decline and investor panic selling, market sentiment has also changed. The price of Bitcoin has been continuously declining from its peak until it rose again to around 9,300 on Tuesday afternoon. Then, during the weekend, there was a significant price drop and altcoins rebounded, leading to widespread belief that after the bull market, Bitcoin will enter a period of adjustment. However, when there is no large inflow of funds, this trend can change. This means that many investors will sell their chips for speculation. Therefore, even some retail investors can buy Bitcoin to profit.

Therefore, if Bitcoin can break through $10,000 or even higher, it is likely that new institutions and funds will join in and invest more funds into Bitcoin. However, this behavior will also have an impact on the price of Bitcoin, as most retail investors are cautious about Bitcoin.

Of course, some investors will sell the Bitcoin they hold in the short term to gain more profits. For example, recently, more than $10,000 worth of BCH was stolen from an address on a project called Bloq and transferred to other addresses. This has led to speculation that someone may be considering selling to buy more Bitcoin for profit.

In fact, these events are due to the decrease in the hype surrounding the DeFi concept and the immaturity of DeFi applications. However, the DeFi ecosystem is still very active, and the smart contract functionality on the Ethereum chain is rapidly improving. Some DeFi protocols are also about to launch their native tokens DEFI (Decentralized Finance). Although the development of DeFi is still in its infancy, it still needs to wait for further industry development to achieve explosive growth. The current blockchain field is still relatively early and will gradually become the main battlefield of a new round of development.

Regarding the current market situation, earlier today, the Bitcoin trend has been weak, and at one point reached 10,800 and then fluctuated down to a low of 9,800. After a strong rally yesterday, the market has not changed much.

Here are several questions that everyone should pay attention to:

First, why won’t the overall market trend of Ethereum follow the direction of Bitcoin’s major fluctuations?

Why is Bitcoin surging

In the past 24 hours, Bitcoin has risen by nearly 7%, from $11,700 to $11,500. According to CoinMarketCap data, since October 14th, the price of BTC has been fluctuating between $11,200 and $12,000.

But this time, the steep decline did not have a significant impact on the price of Bitcoin, but was instead influenced by other major cryptocurrencies such as XRP and TRX.

In recent days, due to the warming market sentiment and the upcoming US election, global assets have started to recover. Gold has also shown signs of rebound, breaking through $1,900 at one point, and silver has also experienced a strong rally.

With recent investors’ optimism about the post-pandemic economic outlook, worsening international situation, and global stock market decline leading to weak US stock market performance, global funds are pouring into safe-haven investment channels, and the demand for safe-haven assets is gradually increasing. At the same time, Bitcoin has quickly surpassed the $14,000 mark and once again reached a new all-time high in a short period of time.

However, compared to this, the high leverage of traditional financial markets has intensified market risks, leading many to believe that this is a “bubble” because these speculators often do not have enough investment costs to deal with the uncertainty brought by a crisis, thereby pushing down returns and driving the skyrocketing price of Bitcoin. (Huoxing Finance)

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Why is Bitcoin rising while Ethereum isn’t rising (Why is Bitcoin surging)

Why is Bitcoin surging

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