This Thursday, the cryptocurrency markets are still trending downward as the prices of Bitcoin and Ethereum decline. Ethereum is trading below the $1,300 mark, while BTC has breached the $19k support level. It has been a difficult week for the cryptocurrency markets, as BTC and ETH lost 5% and 7%, respectively. The underperformance of stocks, which are also down this week, is most likely to blame for the falling price.
- As BTC and ETH fail to hold support, cryptocurrency markets continue to exhibit bearish momentum.
- BTC’s volatility is decreasing despite the current bear market.
- Bitcoins mined sustainably will be represented by Sustainable Bitcoin Certificates, which will be introduced using a new protocol dubbed the Sustainable Bitcoin Protocol.
- Ethereum is becoming deflationary as more ETH is burned than produced.
- More Bitcoins left exchanges in October, displaying diamond hands.
- While there is a negative short-term outlook for the cryptocurrency markets, the long-term outlook is positive due to the declining volatility and improving tokenomics.
General Market Update
We haven’t yet seen cryptocurrencies recover, even though stocks are up today and displaying a modest optimistic momentum. The good news this week is that Bitcoin’s volatility is decreasing even as prices are falling. Despite the bear market, BTC is still trading around $19k and has only had tiny price changes recently.
Moreover, a sustainable Bitcoin protocol aims to turn BTC into a climate-positive asset, according to a report from Yahoo Finance. It is well known that the proof-of-work blockchain that underpins Bitcoin is extremely energy intensive to maintain and operate, which has a negative impact on the environment.
The Sustainable Bitcoin Protocol will roll out Sustainable Bitcoin Certificates, or SBCs, which are transferable assets that represent Bitcoin that has been sustainably mined, in order to address this environmental issue. SBC purchases allow consumers and investors to fulfill their sustainability requirements.
The fungibility of Bitcoin could be compromised by such a protocol because sustainably mined Bitcoin would theoretically be worth more than regular BTC.
Sustainable blockchain projects are the way of the future, as demonstrated by the network merger that made Ethereum the biggest proof-of-stake network in cryptocurrencies, despite certain possible downsides.
Concerning Ethereum, a report from Coindesk notes that the quantity of tokens has dropped by 4,000 over the previous week, causing Ether to experience deflation for the first time since the merge. The deflationary mechanism results from the fact that more ETH is destroyed than is created when transactions are verified.
Given the duration and degree of deflation, the amount of ETH burned over the last week resulted in a drop in the total supply of 0.13%, which is fairly significant. The rate of new Ethereum creation has also decreased by 90% since the merge, indicating far better tokenomics than previously.
Bitcoin And Ethereum News Update
With no movement over the previous 24 hours, the price of bitcoin is currently $18,940, down 5.44% this week. BTC has a $362 billion market cap and $37 billion worth of trading activity in 24hrs. At $1,254, Ethereum is currently down 7% over the last week and 3% over the last 24 hours. With a $15 billion transaction volume over the course of a day, ETH has a market valuation of $154 billion.
According to Santiment, over the month of October, the number of bitcoins leaving exchanges steadily increased, reaching levels last seen in November 2018. This demonstrates that many investors are prepared to keep their investments despite the bad 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 trading volumes for both Bitcoin and Ethereum are increasing noticeably. BTC’s trading volume increased by 39% over the past 24 hours, while Ethereum’s trading volume increased by 85%.
Seeing how Ethereum stopped outperforming Bitcoin in the short run after the merge is quite worrying. However, the outlook for BTC and ETH over a longer time horizon is still very favorable, and it is likely that both crypto assets will bottom out over 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 projects.
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