Crypto Market Update
For the past 2 days, BTC has been trying hard to break the upper trendline coming down from 64K. With the initial hype and buzz around EIP-1559 gradually receding, crypto markets are looking increasingly weak. A correction appears imminent.
ETH rose 12% in the first 2 hours of the introduction of the EIP-1559 protocol. To put this into perspective, even with this new protocol in place, the total value of tokens to be burnt in a year is approximated around 5 Billion dollars which appear to be a number of extreme proportions, but compared to ETH's current market cap, means only around 2% of the total value. Per year. And yet, what we saw yesterday was around 30 Billion dollars being put into the cryptocurrency in less than 2 hours. People also seem to be completely ignorant of the abrupt reduction in mining revenues that the Ethereum ecosystem currently faces. This is precisely why I think the current markets are bound for a correction.
On the other hand, we have no idea how bad Tether's actual financial woes are. I was made aware that just yesterday, 1 Billion dollars worth of tether was transferred to Binance before this substantial bubble we are currently in, came into being. You can only imagine what is going on.
In the long run, however, I'm massively bullish when it comes to ETH. The new protocol, combined hopefully with measures to retain miners and developers in the Ethereum ecosystem, will surely usher a golden age in the world of cryptocurrencies and the way we treat, organize and store our financial wealth.
ETHUSDT
BTCUSD
ETH rose 12% in the first 2 hours of the introduction of the EIP-1559 protocol. To put this into perspective, even with this new protocol in place, the total value of tokens to be burnt in a year is approximated around 5 Billion dollars which appear to be a number of extreme proportions, but compared to ETH's current market cap, means only around 2% of the total value. Per year. And yet, what we saw yesterday was around 30 Billion dollars being put into the cryptocurrency in less than 2 hours. People also seem to be completely ignorant of the abrupt reduction in mining revenues that the Ethereum ecosystem currently faces. This is precisely why I think the current markets are bound for a correction.
On the other hand, we have no idea how bad Tether's actual financial woes are. I was made aware that just yesterday, 1 Billion dollars worth of tether was transferred to Binance before this substantial bubble we are currently in, came into being. You can only imagine what is going on.
In the long run, however, I'm massively bullish when it comes to ETH. The new protocol, combined hopefully with measures to retain miners and developers in the Ethereum ecosystem, will surely usher a golden age in the world of cryptocurrencies and the way we treat, organize and store our financial wealth.
ETHUSDTBTCUSD
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