After declining for the past five weeks, the largest crypto assets by market capitalization, namely Bitcoin (BTC) and Ether (ETH), are in a position of down 50 percent from their highest peak. all-time high achieved at the rally in 2021 ago.
BTC still dominates 41.8 percent of the market capitalization at US$628 billion. The price of BTC is trading at $32,947, a level not seen since July last year according to crypto data aggregator CoinMarketCap.
This price means that BTC has decreased by 51.98 percent since reaching all-time high US$68,789 on November 10, 2021. ETH also suffered a similar fate.
ETH has a market dominance of 19.2 percent with a capitalization of US$289 billion. Its current value is only US$2,395 or 50.8 percent of its peak of US$4,891 reached on November 16, 2021.
BTC price movements can be understood from the point of view of inflows and outflows from the crypto exchange. Larger inflows generally indicate a trend bearish because investors move their deposits to exchanges in exchange for fiat or stablecoin.
On the other hand, a larger outflow could be a signal bullish because investors move their deposits to cold wallet for long term storage.
Bitcoin and ETH Prices Drop Again
decrypt.co Launching, Glassnode data shows that BTC’s 15 percent decline over the past seven days is correlated with the volume of inflows to various crypto exchanges. On May 6, there was an inflow of 12,246 BTC or the equivalent of US$402 million at today’s prices.
The volume of ETH inflows and outflows this month means most investors have moved their deposits off the exchange.
Contradiction between trends bearish price ETH with outflows from the exchange means that there are other factors affecting the number two crypto asset.
ETH investors may withdraw their assets from crypto exchanges for the purpose of stake in order to update merge which is expected to occur in the third quarter.
ETH investors can also sell their ETH deposits through various decentralized exchanges (DEXs) that are not tracked by Glassnode data. The Uniswap DEX scored $1.63 billion in trading volume over the past 24 hours, which is more than Coinbase’s $500 million volume.
ETH issued from decentralized exchanges can also be used in lending and financing protocols, to print stablecoin or various other DeFi activities without selling the associated ETH.
Bitcoin and ETH prices fell again, some analysts had predicted. A few days ago, Dylan LeClair, crypto analyst at Paradigm 21 said, that Bitcoin price is falling steadily, possibly to US$24,300, based on recent developments. [ed]