Ethereum Outperforms Bitcoin, Dogecoin Ahead of Merger: Analyst Warns Data May Trigger 'Summer Lows'
Bitcoin traded flat, while Ethereum rose late Thursday as global cryptocurrency market capitalization rose 0.3% to 983.9 billion dollars.
See also: Best Crypto Debit Cards
Why it matters: The second-largest coin has been buoyant amid the buzz surrounding its move to a proof-of-stake mechanism. The apex coin failed to make any significant moves.
Michael van de Poppe said that Ethereum "carries the whole market". The cryptocurrency trader tweeted: "If regular markets rebound slightly, we'll likely accelerate quite quickly with crypto on the rise."
Among other risky assets, equity futures were flat at press time as investors awaited U.S. employment data for the month of August, which are to be released on Friday.
"The real test for Bitcoin is whether it can stay close to the $20,000 level following the release of the NFP [Non-Farm Payroll]. A labor market report and Fed rate hike bets could increase and that could trigger downward pressure that targets summer lows,” said Edward Moya, senior market analyst at OANDA.
Justin Bennett shared two charts on Twitter and said the dollar index or S&P500 was "wrong", adding that "reaction to Friday's NFP should give us an answer" .
On the Ethereum side, derivatives dominate before the "merger". Kaiko Research highlighted the share of perpetual futures volume between BTC and ETH, and said the latter controlled 45% of volume at the start of August to 57% at the end of the month.
BTC/ETH Perpetual Futures Daily Volume — Courtesy of Kaiko ResearchThe cryptocurrency market data provider, in a note seen by Benzinga, also highlighted open interest - a measure of the number of futures positions open at a given time and the amount of capital invested in the futures contracts.
Kaiko said the open interest denominated in ETH shows that "the number of futures positions open at this time represents a staggering all-time high, acting as massive leverage on the ETH price action over the next few weeks."
ETH Denominated ETH Open Interest — Courtesy of Kaiko ResearchThe data provider said funding rates heading into late August fell sharply. “This negative decline, which coincides with an accumulation of open interest, leads us to conclude that the majority of new funds accumulating in ETH futures markets are short-term biased,” Kaiko said.
>ETH's perpetual daily volume has grown from $19 billion to over $33 billion over the past year. Over a similar period, daily spot volume increased from $3.7 billion to $4.8 billion.
ETH Perpetual Future and Spot Volume - Courtesy of Kaiko ResearchConverting these volumes into a ratio, Kaiko said we can see the "increasing dominance of perpetual futures volume for ETH as the ratio of perps to volume at cash went from 5x volumes to around 7."
ETH Perpetual Future to Spot Volume Report - Courtesy of Kaiko Research"With...
Bitcoin traded flat, while Ethereum rose late Thursday as global cryptocurrency market capitalization rose 0.3% to 983.9 billion dollars.
See also: Best Crypto Debit Cards
Why it matters: The second-largest coin has been buoyant amid the buzz surrounding its move to a proof-of-stake mechanism. The apex coin failed to make any significant moves.
Michael van de Poppe said that Ethereum "carries the whole market". The cryptocurrency trader tweeted: "If regular markets rebound slightly, we'll likely accelerate quite quickly with crypto on the rise."
Among other risky assets, equity futures were flat at press time as investors awaited U.S. employment data for the month of August, which are to be released on Friday.
"The real test for Bitcoin is whether it can stay close to the $20,000 level following the release of the NFP [Non-Farm Payroll]. A labor market report and Fed rate hike bets could increase and that could trigger downward pressure that targets summer lows,” said Edward Moya, senior market analyst at OANDA.
Justin Bennett shared two charts on Twitter and said the dollar index or S&P500 was "wrong", adding that "reaction to Friday's NFP should give us an answer" .
On the Ethereum side, derivatives dominate before the "merger". Kaiko Research highlighted the share of perpetual futures volume between BTC and ETH, and said the latter controlled 45% of volume at the start of August to 57% at the end of the month.
BTC/ETH Perpetual Futures Daily Volume — Courtesy of Kaiko ResearchThe cryptocurrency market data provider, in a note seen by Benzinga, also highlighted open interest - a measure of the number of futures positions open at a given time and the amount of capital invested in the futures contracts.
Kaiko said the open interest denominated in ETH shows that "the number of futures positions open at this time represents a staggering all-time high, acting as massive leverage on the ETH price action over the next few weeks."
ETH Denominated ETH Open Interest — Courtesy of Kaiko ResearchThe data provider said funding rates heading into late August fell sharply. “This negative decline, which coincides with an accumulation of open interest, leads us to conclude that the majority of new funds accumulating in ETH futures markets are short-term biased,” Kaiko said.
>ETH's perpetual daily volume has grown from $19 billion to over $33 billion over the past year. Over a similar period, daily spot volume increased from $3.7 billion to $4.8 billion.
ETH Perpetual Future and Spot Volume - Courtesy of Kaiko ResearchConverting these volumes into a ratio, Kaiko said we can see the "increasing dominance of perpetual futures volume for ETH as the ratio of perps to volume at cash went from 5x volumes to around 7."
ETH Perpetual Future to Spot Volume Report - Courtesy of Kaiko Research"With...
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