By
Temitope Olatunji
April 24th, 2024
The activities signaling the bull run include increased network activities between both digital currencies, and the increase in the transaction value in the two blockchains.
There has been a significant price action between Bitcoin (BTC), and Ethereum (ETH) in recent times, a trend that is being capitalized on by top market players including institutional investors. Whilst both are trading below their all-time highs, impressive price gains have been recorded by the duo in the past week, and month respectively.
At the time of writing, Bitcoin is changing hands at $48,001.21, up 0.4% in the past 24 hours. While the premier digital currency has seen a slight dump of 3.1% in the past week, its monthly gains are up 14.9% spelling an impressive run in August. Ethereum has outperformed Bitcoin by all metrics with a 7.7% growth in the past 24 hours. According to data from Coingecko, the cryptocurrency is also up by 2.9% and 34.5% in the past week and month respectively.
Bitcoin and Ethereum Journeying Towards a Positive Year-End Close
Per data from cryptocurrency analytics platform, Glassnode, there are some on-chain metrics that resemble those flashed toward the end of 2020 that spelled the bullish growth in the prices of the assets. Both Bitcoin and Ethereum are witnessing a bullish divergence with the propensity to usher in a new bull run.
“As the Bitcoin and wider cryptocurrency market rallies higher, a remarkable on-chain divergence continues to form across both Bitcoin and Ethereum. On-chain activity on both chains has remained quiet relative to bull market highs, even as price momentum continues upwards, and bullish trends in supply dynamics remain in play.”
The activities signaling the bull run include increased network activities between both digital currencies, and the increase in the transaction value in the two blockchains. While the total number of active addresses on Bitcoin is currently pegged at 275k per day, around 35% below the January peak, Ethereum’s comes in at 450k per day, with a 33% decline from its highest levels.
Against expectations, this is not entirely bad as Glassnode observed that “current activity on both chains is similar to the stable pre-bull accumulation range established in mid to late 2020.”
Bitcoin Transfers also hit its highest point in the past week, printing a two year record by doing so. According to Ki Young Ju, CEO of analytics firm CryptoQuant, there are a number of explanations for the growth other than exchange-related activities.
$BTC Tokens Transferred (not entity-adjusted) hit a two-year high a few days ago.
These transactions were not from exchanges.
Possible explanations would be:
1/ OTC deals
2/ Whales moved due to regulations
3/ Unlabelled exchange wallets moved for security or regulation reasons pic.twitter.com/4g60n9xhEM— Ki Young Ju (@ki_young_ju) August 31, 2021
Ethereum, despite its current outperformance of Bitcoin in the past week and month, is on track for further price leaps in the near term. Drawing on the emergence of the London Hardfork, the coin has turned into a deflationary asset, with close to half a billion Ethereum tokens burnt thus far. This as well as the anticipated switch to Ethereum 2.0 lends a bullish case for incremental price growth for Ethereum in the mid to long term.