What is happening with the recent price movements of Ethereum and Bitcoin?
Several traditional companies have acquired massive amounts of Bitcoin (BTC) since the summer of 2020. Meanwhile, the asset surpassed its 2017 record by nearly $20,000, recently breaking $34,000 before falling back to $27,700. However, the drop has created serious buying pressure, according to OCKoin’s chief operating officer, Jason Lau.
„Over the weekend, as Bitcoin Union prices reached new all-time highs near $34k, the markets hit new resistance levels,“ Lau told Cointelegraph. „Both the total crypt market capitalization and the bitcoin dominance reached 2017 highs of around USD 800B and 73% respectively,“ he said, adding:
„Profit taking occurred around these levels, which resulted in some sideways trading and caused many to be over-leveraged in the futures. We saw USD 1.4B in BTC and USD 500M in ETH futures settled in the last 24 hours, which resulted in a sharp drop to the USD 29,500 level for Bitcoin. However, these falls are being bought up fairly quickly, reinforcing the narrative that there are underlying offers from institutions interested in accessing bitcoin.“
Last year started a trend of major players, including MicroStrategy, MassMutual and Paul Tudor Jones, who allocated huge amounts of capital to Bitcoin. The public can be grateful for this institutional acceptance of Bitcoin’s recent upturn, according to Crypto Bull and Galaxy Digital CEO Mike Novogratz.
„In addition, we saw a rotation out of BTC during this period, as traders rotated assets from BTC to others for higher returns,“ explained Lau about the recent Bitcoin price action. „This is evident as Ethereum gained 13% over bitcoin in the last 24 hours, while bitcoin dominance fell to 69%“.
Ethereum (ETH) recently surpassed $1,000 as part of a significant move that outpaced Bitcoin in the short term.