- For the first time since March 6, 2018, BTC 30-day historical volatility broke above 100%.
- Ethereum is becoming “a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin.”
The emergence of Facebook’s Libra has redirected focus back on Bitcoin from both the mainstream media and the regulatory landscape. More so, there has been a significant shift in coin relationships according to a report by SFOX research team.
In fact, the United States President commented on the Libra project and Bitcoin on July 12 saying “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” Trump added that “Facebook Libra’s “virtual currency” will have little standing or dependability.”
These tweets coupled with Facebook Inc.’s hearings at both the US Congress and Senate have resulted in increased Bitcoin volatility from 89.33% on July 10 to 100.30% on July 17. This “makes the first time BTC 30-day historical volatility has surpassed 100% since March 6th, 2018.”
Suggested content: Ethereum price analysis: ETH/USD soars past $220 critical level
The SFOX report notes that Bitcoins market share has taken center stage in the crypto space amid the probe into Libra. Bitcoin dominance has increased significantly from 50% around March to range between 65% and 75% at the moment.
“Leading altcoins — ether (ETH), bitcoin cash (BCH), litecoin (LTC), bitcoin SV (BSV), and ethereum classic (ETC) — were all less correlated to BTC than they have been in recent months, whereas they were all highly correlated to each other,” SFOX states in the report.
In addition to that:
“Correlation data reinforce the idea that investors and traders may still be much more attuned and responsive to Bitcoin rather than other altcoins, especially when the crypto sector enters the national regulatory spotlight.”
While commenting on the correlation of Ethereum correlation with Bitcoin, the team notes that ether is gradually becoming “a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin. If this trend continues, it may become inappropriate to categorize Ethereum as an “altcoin” on a par with other cryptoassets that are not Bitcoin.”
Read More: Bitcoin market update: BTC/USD hangs in the balance above $10,000; what next?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
Ethereum could retest $2,707 resistance following increasing ETF inflows and uptrend in funding rates
Ethereum traded around $2,640 on Thursday, up more than 2% following increased bullish bias among investors, as evidenced by ETH ETF net inflows and an uptrend in funding rates.
Ethena Labs launches new UStb stablecoin backed by BlackRock's BUIDL token
Ethena Labs announced on Thursday that it has released a new stablecoin product, UStb. The new stablecoin will be fully collateralized by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) and function similarly to a traditional stablecoin.
Crypto Today: Bitcoin, Ethereum and XRP trade in the green as crypto lost to hacks and fraud plunge by 40%
Bitcoin has moved above the $65,000 psychological level after flipping a key resistance, XRP sees a slight 1% gain. Ethereum trades around $2,650, up over 3% in the past 24 hours, as it attempts to tackle the $2,707 key resistance.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.