This Thursday, as Bitcoin and Ethereum prices decline, the cryptocurrency markets continue to exhibit bearish momentum. While Ethereum is below $1,300, BTC has breached the $19k support level. Cryptocurrency markets have had a tough week, as BTC and ETH dropped 5% and 7%, respectively. The underwhelming performance of stocks, which are also down this week, is probably to blame for the price decline.
- Since BTC and ETH fail to hold support, cryptocurrency markets have continued to trend downward.
- BTC is becoming less volatile, even in the present bear market.
- Sustainable Bitcoin Certificates, which reflect bitcoin that has been mined sustainably, will be introduced using a new protocol dubbed the Sustainable Bitcoin Protocol.
- As more ETH is being burned than produced, the Ethereum network is becoming deflationary.
- In October, More Bitcoins moved away from exchanges, exhibiting diamond hands.
- Although the short-term outlook for the cryptocurrency markets is negative, the long-term outlook is positive due to the declining volatility and advancements in tokenomics.
Global Market Update
While the stock markets are up today and displaying a tad of bullish momentum, the recovery of cryptocurrencies has not yet happened. The good news for this week is that Bitcoin is getting less volatile even as prices are falling. Despite the bear market, BTC’s price has fluctuated slightly over the last few months, staying in the $19k region.
In other news, a sustainable Bitcoin protocol aims to turn BTC into a climate-positive asset, according to a story from Yahoo Finance. It is well known that the proof-of-work blockchain used by Bitcoin harms the environment and consumes a significant amount of electricity to maintain.
The Sustainable Bitcoin Protocol will create Sustainable Bitcoin Certificates, or SBCs, which are transferable assets reflecting Bitcoin that have been mined sustainably, to address this environmental issue. Investors and users can purchase SBCs to meet their sustainability requirements.
Since a sustainably mined Bitcoin would theoretically be worth more than a conventional BTC, such a system might potentially damage Bitcoin’s fungibility.
As demonstrated by the network merger that made Ethereum the largest proof-of-stake network in bitcoin, sustainable blockchain projects are the way of the future, despite certain possible limitations.
Speaking to Ethereum, a report from Coindesk shows that the quantity of tokens has dropped by 4,000 over the previous week, signaling Ether’s first deflation since the merger. The deflationary process results from the fact that confirming transactions burns more ETH than it creates.
Given the length of the deflation and the amount of ETH burned, a total reduction of 0.13% of the total supply was achieved over the previous week, which is fairly significant. Additionally, since the integration, the rate of fresh Ethereum creation has decreased by 90%, indicating far better tokenomics than before.
Bitcoin And Ethereum Price Action
Bitcoin’s price is currently $18,940, down 5.44% this week and little changed over the previous 24 hours. BTC has a $362 billion market value and $37 billion in 24-hour trading volume. Ethereum is currently trading at $1,254, down 7% over the last week and 3% over the previous 24 hours. With a $15 billion 24-hour trading volume, ETH has a market cap of $154 billion.
As reported by Santiment, In the month of October, Bitcoin experienced a steady increase in coins leaving exchanges, reaching levels last seen in November 2018. This shows that many investors are willing to hodl long despite the bear market.
📊 #Bitcoin is seeing more and more coins moving away from exchanges in the month of October, matching levels last seen in November, 2018. Meanwhile, #Ethereum's supply has fluctuated a bit higher after a big influx moved to exchanges before the #merge. https://t.co/qsDjnJVnO6 pic.twitter.com/cX16YWFFzK
— Santiment (@santimentfeed) October 11, 2022
The trade volumes for both Bitcoin and Ethereum have significantly increased. The 24-hour trading volume for BTC increased by 39%, while the 24-hour trading volume for Ethereum increased by 85%.
It’s worrisome that Ethereum stopped outperforming Bitcoin in the short term following the merge. However, the long-term outlook for Bitcoin and Ethereum is still quite bullish, and both crypto assets will probably bottom out in the coming weeks or months.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.