It’s one of those great weekend moves again. The top two cryptocurrencies have taken off, skyrocketing within hours to leave Friday’s dip below $6,000 USD far behind.
Bitcoin (BTC) jumps $500 in 1 hour
Bitcoin (BTC) prices spiked by over $500 in a matter of hours, jumping from about $5,955 to $6,462 according to crypto price provider TradeBlock. Trade volumes also spiked as shown in the second graph below.
Ethereum (ETH) rises rapidly to $464
Ethereum (ETH), on the other hand, broke above its major price resistances and saw its value surge from under $410 to reach a high of $464. That’s a jump of about $50 within the same timescale as Bitcoin.
What happened on Friday?
The price gains come at a time the market is getting over FUD created by reports concerning Tether (USDT) vulnerability.
When the security firm SlowMist revealed that it had discovered a vulnerability relating to deposits of the stable coin, the market feared for the worst. But that seems to have faded away as fast as it had surfaced.
Much of the positive reaction comes from the fact that the flaws were determined not to be Tether’s problem. It also appears that not many exchanges had experienced the flaw.
At the time of writing, Bitcoin and Ethereum have all gained over 8 percent in price value over the last 24 hours. The top coin has even crossed into the green over the 7-day period, indicating a possible recovery could be underway.
And it wouldn’t be a big surprise if things were to begin to head north. A lot has been taking place behind the scenes with regard to technological developments.
Recent developments in Bitcoin (BTC) and Ethereum (ETH)
The Bitcoin (BTC) Core team, Blockstream developers, and Lightnight Labs have been making great progress on Lighting. Defined as a ‘second layer payment protocol’, this tech will eventually lead to instant payments with bitcoins at low fees.
Lightning is commonly referred to as the scaling solution to bitcoins currently limited transaction capacity.
But the technology has already improved (ex: Segregated Witness “SegWit” implementation). It was just proved that Bitcoin (BTC) can be used to move money at very cheap costs.
An anonymous address is shown to have sent close to $300 million within minutes and paid just $0.04 as fees!
Ethereum could also be seeing a surge as more attention is projected towards Eth-based projects like Golem, Enigma, and Augur. The imminent approach of its Casper protocol is also a factor in the continued interest in Ethereum.
Ethereum founder was quoted earlier this week at an OmiseGO (OMG) panel that with the addition of Sharding and Plasma could theoretically boost the network’s capacity to 1M transactions per second (tx/s) and even 100M tx/s down the line.
To put things in perspective, Visa and Mastercard currently have a capacity of about 50K tx/s while TRON (TRX) has about the same. This difference is insurmountable.
Other than the top two coins working on challenges relating to network scalability and fees, there has been the talk of a real shift in institutional sentiment about the coins.
Even as prices have been plummeting, the industry has looked well-poised for a revamp with an influx of institutional investors. That could get even more widespread with crypto products like ETFs in the pipeline.
The SEC’s game-changing decision
The SEC has also helped maintain a positive air with clarifications that the two coins won’t be declared securities. It has cleared a lot of uncertainty and BTC and ETH will likely reap huge from it.
That perhaps explains why some within the industry have continued to sound bullish, even as prices tanked over much of 2018. This June alone has seen Bitcoin and Ethereum reach the lowest prices last seen before the 2017 boom took off.
Could this be a signal that Bitcoin isn’t “dead” after all? We should be optimistic, but it could all go back to square one.
What next for Bitcoin (BTC) and Ethereum (ETH) prices?
It has happened before that BTC and ETH prices jumped double digits in 24 hours, only to slide and erode all gains the following day.
The latest was when BTC rose from below $5,800 and traded above $6k for about 48hrs. It dipped once more to touch another low last seen in October 2017.
What should we make of this price jump then? Of course, it could turn out to be a “fake” jump that results in more downturns over the next few hours/days.
If BTC and ETH are able to post higher highs and break above $7k and $500 respectively, then investors may begin to believe. One thing is clear though, crypto trading is never static- the situation on the market can turn liquid any time.
The two currencies have hit some sort of level ground, trailing a delicate upside. There’s more likelihood of a downturn than a continued uptrend.