Bitcoin & Ethereum Fundamentals Outperforming Price, Analyst says “Volatility driven by Technical Factors”

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Bitcoin & Ethereum Fundamentals Outperforming Price, Analyst says “Volatility driven by Technical Factors”

Bitcoin and Ethereum are in the green while BTC dominance is taking a hike to 55 percent. Meanwhile, analysts and experts say the recent volatility is driven by technical factors and price is down more than the fundamentals.

Bitcoin Dominance Taking a Hike While Ethereum’s Sliding Downwards

Currently, trading at $3,544 with 24-hours gains of 1.44 percent, Bitcoin is managing the daily trading volume of $4.9 billion. The leading cryptocurrency has lost more than 82 percent of its value from its peak.

Bitcoin price chart, Source: Coinmarketcap

Ethereum is trading at around $93 while registering greens by 1.39 percent while being in the red by 0.69 percent in the BTC market.

Ethereum price chart, Source: Coinmarketcap

Meanwhile, BTC dominance is rising at 55 percent and Ethereum is decreasing, reaching 8 percent.

Source: Coinmarketcap

Price Down more than Fundamentals

Though there is no telling how low the prices will go, they are significantly down more than the fundamentals by Chris Burniske, a partner at Placeholder. In his latest blog post, he shares, “fundamentals of quality crypto networks are down less than prices, and significantly so,” where fundamentals refer to the health of the demand-siders and supply-siders.

eToro senior analyst, Mati Greenspan took to Twitter to pitch in similar sentiments,

“The recent market selloff is not justified by fundamentals. According to @cburniske, network usage remains solid & coins are oversold in comparison. This supports our assessment that recent volatility is driven by technical factors.”

Bitcoin Fundamentals and Price

Burniske shares that Bitcoin is currently processing ~250,000 transactions per day, while the “number of daily transactions is stable to ticking up.”

“In the case of Bitcoin, 59% of the network activity remains since the peak,” Here a 65% drawdown in network value is justified, in comparison to the current 81% decline.

“Bitcoin continues to regularly process over a billion dollars in transactional value a day (NOT trading volume), and it’s clear how tightly the orange line of this fundamental is coupled with price.” “Bitcoin is currently in the 300,000–500,000 daily unique active addresses range, with current values down 51% from the December 2017 peak.” It has a justified drawdown of 76%.

Ethereum Fundamentals and Price

Ethereum is currently processing ~500,000 transactions per day where “a 77% drawdown in network value is justified, again much less than the 93% drawdown we currently see.”

“Developers and consumers using Ethereum’s smart contracts continue mostly unabated, as witnessed by another divergence between this fundamental (green-line) and network value.” With this, a 13% drop in network value is justified but not the jaw-droppingly less than the 93%.

Ethereum’s hash rate is higher now than at its peak but being at “negative slopes require us to keep a close eye on them.”

It further specifies that hash rate that follows price along with developer metrics are also outperforming price. Burniske concluded this with “it’s clear to me that Mr. (Crypto) Market has only a vague idea of what he’s doing right now.”

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Bitcoin & Ethereum Fundamentals Outperforming Price, Analyst says “Volatility driven by Technical Factors”
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Bitcoin & Ethereum Fundamentals Outperforming Price, Analyst says “Volatility driven by Technical Factors”
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Bitcoin and Ethereum are in the green while BTC dominance is taking a hike to 55 percent. Meanwhile, analysts and experts say the recent volatility is driven by technical factors and price is down more than the fundamentals.
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Author: Abhinav Agarwal

A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com

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Abhinav Agarwal 109 Articles

A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com

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