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Bitcoin may be the most popular cryptocurrency, but the Ethereum network token is growing.
Bitcoin may be the most popular cryptocurrency. But crypto investors would be wise to look to Ether, which outperformed its more volatile cousin in 2021 – a trend that could have continued in 2022.
Today’s Chart shows Bitcoin against the dollar on a logarithmic scale over the past five years, measuring the acceleration of the cryptocurrency movement, taking into account its volatility. After peaking in late 2017, Bitcoin has largely traded sideways.
The volatility associated with the presidential election gave it a boost, and then accelerated when traders took the risk after Covid’s first vaccine arrived in early November 2020. For a while, Bitcoin showed a positive correlation with the S&P 500 index, rising market values and even more. goods as a measure of inflation. But then, after a 516-month yield of about six months, its momentum was halted.
Today, cryptocurrencies see fewer wild swings. Tuesday’s thin volume, for example, would have traditionally caused a big move, but Bitcoin fell just 6.7%, or less than two standard deviations. In the first half of the year, cryptocurrencies exceeded this threshold three times more than in the second half, mainly due to retail trade and regulatory risk.
“Many retailers have made a living changing money in 2021 and have been waiting to make a profit until the end of the year to delay tax payments until 2023,” said Sergio Silva, Fireblocks ’sales manager. “That’s another source of sales pressure that could jump into additional weakness in January.”
At the moment, the technical price action of Bitcoin seems to be more driven. The 200-day moving average, for example, provided support in December.
The biggest gains this year, however, have been in Ether, a sign of the Ethereum network. Financial technology companies are benefiting from the adoption of blockchain technology, and perhaps the popularity of fungible tokens (NFTs) in the art and gaming world is even more pronounced. Ether’s measurement of Bitcoin’s surplus in terms of volatility shows that its value has risen to the levels last seen in the summer of 2018.
“It’s not so clear to the whole world, to the big ones, what’s really going on with Bitcoin, Ethereum, this whole technology vessel … it’s really a revolution in software development,” Coinlist CEO Graham Jenkin told Bloomberg. TV interview. “Blockchain technology is a completely new way to build, distribute, and run software.”
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