Ethereum is one altcoin doing very well in the crypto industry. The asset performed incredibly well since late last year as the only altcoin institutional buyers showed interest for. Bitcoin formerly dwarfed the sector by taking up the monies of most big buyers.
The new outflows from BTC could mean that investors want to try other digital assets apart from Bitcoin, despite the digital asset’s unexpected but continuous increase. One ETH was $200 around this time last year, significantly different from the currency’s current price of around $1280. Many factors pivoted the price growth, and then the market structure is pulling in investors of its own to cause a possible price increase in the future.
Ethereum holders turn bullish
Like most Bitcoin holders, Ethereum users predict a massive increase in the digital asset in some time to come. Holders don’t want to sell their assets, causing scarcity and increased demand in the crypto space. The digital asset gained more than 60% in the fast few days, and again today, it added 10% to its previous value.
The crypto keeps growing with price changes from slightly over $1200 to $1280 now. Statistics show that if Ethereum faces more increase, it could break its record of above $1,400. The currency attained a peak in 2018, and since then, it failed to reach that point.
Also read:More terrific news for the industry as earlier this week, the sector reached a total market capitalization of $1 trillion. The industry’s success surprises many people, and its gradual adoption could change things for the financial system. If countries finally create the suggested central digital currencies, it will help the global digital assets adoption.
Top players like China are already making big moves on central currency’s creation, with the primary goal of improving cross-border payments and efficiency. The European Union is also working to create the digital euro, which countries within the region spend.
Bitcoin’s iconic increase
In the past few days alone, the digital asset added 25% to its value leaving the current price slightly above the $40,000 mark depending on the exchange. The digital asset faced more than a 100% increase since December and showed no signs of stopping.
There is new information on Twitter that Bitfinex shared concerning an Ethereum Whale on its platform. The whale opened an Ethereum long with ETH worth up to $1.7 billion as of early 2020 when prices were $200. Since the crypto rose to $1,200, the whale closed the Ethereum long to secure its profits.
The community made an uproar on social media because they believed the closure could cause a price decrease for ETH. The whale took a claim, a loan for that period, and the profit was enough to pay off the money borrowed. People also linked the upcoming CME futures to the sudden closure of the Ethereum long.
Many people suggest that the Ethereum futures could destabilize the market as it did for Bitcoin, but financial experts believe that the futures might increase crypto prices. After CME’s BTC futures crashed, there were changes in the market. Experts pointed out the continuous price increase and linked it to CME futures at that time.
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