Bitcoin has its first month of failure since September 2020, Ethereum surges above $ 3,500 for new all-time high: report
The team at Blockchain.com, a leading provider of digital currency wallets, trading platform, and block explorer service, notes that many people are wondering how long and higher these prices will stay in the long run if the crypto-asset space reaches $ 2 market value Trillion dollars exceeding term.
The Blockchain.com team writes in an extensive blog post that it is focused or committed to maintaining an “overall positive medium-term outlook” for the following main reasons:
- Macro: Crypto is “arguably the best positioned asset class given the current fiscal and monetary environment”.
- Wall St: Many institutions are “still at an early stage in making Cryptoasset products and services available to their customers”.
- Regulation: positive catalysts “like an SEC-approved Bitcoin ETF are still in sight, while countries like Wyoming have continued to make progress on local DAO legislation”
- Public sector: The major investment players that we expect to eventually adopt crypto, including governments and sovereign wealth funds, have so far not introduced crypto in a meaningful way.
- “Digital gold” undervalued: Bitcoin “remains less than 10% of the total market value of actual gold”
- Technology maturity: The development of “various blockchain technologies and protocols, including DeFi, DAOs, smart contracts, etc. is still in its infancy but is progressing rapidly.”
- Adoption penetration: We estimate “a critical mass of currently approximately 100 million Cryptoasset owners and 1 million DeFi users and believe that billions of people will ultimately own and use Cryptoassets”.
The comprehensive Blockchain.com report indicated that the medium-term outlook is “very constructive” but there are still some problems and that price fluctuations can be expected in the future. The report also mentioned that the incredible rise of Dogecoin (DOGE) is “both exciting and scary” at the same time.
Blockchain.com’s report went on to explain what they believe are the main “driving” factors of the emerging cryptocurrency markets. They also provided a thorough analysis of Bitcoin’s or BTC’s activity in the chain.
As stated in the report:
“Ethereum (ETH) put another new USD ever, surpassing the USD 3500 level for the first time in early May. At ~ 0.05 compared to ~ 0.14 in July 2017, ETH remains well below its all-time high in terms of BTC. “
The report added:
“Bitcoin (BTC) has had its first month of decline since September 2020 and its market value dominance level (~ 45%) has dropped to levels not seen since 2017. The broader financial markets were mixed: stocks rose again ~ 5% month; Long-term US Treasuries and gold rebounded (+ 2% and + 3% respectively), while the US dollar weakened (-2%). “
The report also found that the “frenzied” price movement in Dogecoin (DOGE) and other “low traction or track record” digital assets pushed crypto assets to a combined market value of well over $ 2 trillion, while raising questions about the sustainability of crypto prices Has”.
As mentioned in the report, dismissing Dogecoin as the joke it came up with when it was first launched could be a “mistake”. The Blockchain.com blog post indicated that slow-moving institutions “may be insecure and not switch to crypto at all if there is too much newfound uncertainty on the crypto asset leaderboard”.
While commenting on Bitcoin network activity, the report noted that BTC continued to decline in April 2021.
As confirmed in the report:
- The average fee per transaction in April was $ 30. There was a new all-time high of $ 63 / transaction on April 21st. “
- The estimated hash rate “decreased 1.5% in April, resulting in a decrease in the number of confirmed blocks” (the hash rate is “an estimated number; a more detailed view of the hash rate values may be available over a longer period of time be seen … ie 7-day average ”)
As mentioned in the report:
“While the broader crypto bull market continued into April, Bitcoin (BTC) saw its first monthly decline since September 2020. At the end of April, Bitcoin was down 2% for the month.”
Meanwhile, Ethereum (ETH), the world’s second largest crypto, has set another new USD ever and “surpassed the USD 3,500 level for the first time in early May”. However, ETH remains “at ~ 0.05 BTC, well below its all-time high in terms of BTC compared to its record level of ~ 0.14 BTC in July 2017”.
The report added:
“Ethereum is approaching nearly 2000% growth over the past two years, with Bitcoin growing at + 906% over the same period.”
Blockchain.com’s market update also found that stocks have “maintained their resistance to gravity and rose again (S & P500 + 5%)”. The “big losers” in February and March 2021 were able to reverse their course last month, with “US long-term Treasuries rising 2% and gold 3% over the month,” the report revealed, adding that the US dollar “Its strength has reversed since early 2021 and declined -2% in April. “
You can view the full report here.