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Bitcoin and Ethereum Prices Continue to Fall as Volume Shrinks — Traders Betting on More Losses?

  • Jack Thomas
    🤷 Opinions

    As prices continue to trade sideways with small losses, the fall in trading volume could mean there’s more downward action to come

Bitcoin and Ethereum Prices Continue to Fall as Volume Shrinks — Traders Betting on More Losses?
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Contents

After falling quite sharply a week ago, the prices of cryptocurrencies, including the major ones of Bitcoin and Ethereum, have struggled to make up the grounds they lost, choosing rather to continue losing small amounts and trading sideways.

It is a tough place to be in for the market as many expected this kind of negative movement to be a thing of the past as the Bitcoin spring was upon us and a bull rush was seemingly around the corner.

However, coupled with the price falling is also a loss in trading volume, which is an important marker in predicting the next movement of a cryptocurrency. It seems as if both Ethereum and Bitcoin might be headed for more losses as their volume falls back with the lowered price.

Bitcoin’s situation

At its peak last week, Bitcoin’s price touched close to $5,600 before hitting a sell wall shortly after. Volume-wise, things are a bit gloomier. Just before the drop in price, Bitcoin was seeing volume of around $18 billion, but that has gone as low as $12 billion in this last week.

Although most analysts consider the Bitcoin bull market to have started already, there is a chance that the bottom levels of around $3,700 could be seen again before kicking off the real Bitcoin 2020 and 2021 bull run.

Ethereum’s lows

It is a similar situation for Ethereum, the second biggest cryptocurrency by market cap. In fact it is already showing greater signs of price weakness. Ethereum is now trading below its 50-day Estimated Moving Average after a 9 percent drop from $167 to $153 during the weekend.

Its volume also saw a substantial drop in line with Bitcoin’s, going from $7 billion to $5 billion through this last week. The drop in price and the subsequent drop in trading are often associated, but often means more is on its way.

Betting on red

It could well be that traders are shorting the major cryptocurrencies as they wait for the price to fall even more. This could indicate why there has been such a significant lull in trading volumes for these two major cryptocurrencies.

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About the author

Jack Thomas is a journalist from Australia who has had a long career writing about finance and technology. He has combined his enthusiasm for these two subjects and applied his writing to covering blockchain and cryptocurrencies in the past few years.

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Bitcoin in Danger as New Research Shows Google Has Achieved Breakthrough in Quantum Computing

  • Alex Dovbnya
    📰 News

    Google's quantum computer is still too primitive to pose a threat for Bitcoin's cryptography, but things could escalate quickly

Bitcoin in Danger as New Research Shows Google Has Achieved Breakthrough in Quantum Computing
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According to a new research paper published in science journal Nature, Google's quantum computer is able to perform calculations in just three minutes. To put this into perspective, it would take the fastest supercomputer about 10,000 years to perform the same operation, which signifies a major tech milestone for the search behemoth. 

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Google achieves "quantum supremacy"

Back in September, the Financial Times reported that Google has managed to achieve "quantum supremacy," which means that its beast is able to perform calculations that would be impossible to pull off with any other computer. 

However, technology is still way too fragile for commercialization, which is unlikely to happen anytime soon. There is hardly any practical application for quantum computers, but they do have great potential for disrupting a lot of industries, such as finance and transportation.   

Considering that the Trump administration has funneled a whopping $1.2 bln into the development of quantum computing, it might stop being just a buzz word. 

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Will Google's quantum success affect Bitcoin

There is also one notable application for quantum computing -- hacking Bitcoin. The headlines about Google's super-powerful juggernaut has made many wonder whether Bitcoin, whose value derives from the immutability of its Blockchain, is in danger. 

However, ex-Bitcoin Core developer Peter Todd reassured the confused crypto crowd that Google was nowhere near breaking the top coin's cryptography. On top of that, it's not even clear whether quantum computers could potentially be scalable enough for commercial use. 

Bitcoin evangelist Andreas Antonopoulos also opined that Google's quantum breakthrough would have no impact on the orange coin. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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