The market forces that could drive Ethereum and Bitcoin back | City & Business | Finance
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Altcoins have become the focus this year, with BTC and ETH on the back foot as a flood of new currencies enter the market. Several, namely those sporting the Shiba Inu mascot that splintered off from Dogecoin (DOGE), have seen exponential growth. Together, they have clipped value off established currencies alongside a selection of other factors.
Experts believe BTC could claw its way back this month on the back of more “traditional” forces.
Will Morris, Sales Trader at the UK-based digital asset broker GlobalBlock, is among those watching BTC’s recent trouble.
He said altcoins prevented the token from pushing past its 2021 high of $64,000 (£47,414.43).
Mr Morris added that this has led to Bitcoin’s decline in influence, now down to 43 percent of the market.
READ MORE: Will Ethereum go up? ETH reaches for $5,000 but how high will it go?
The coin is no lost cause, however, as he said its links with traditional markets that could see it claw back again.
He said “a slightly delayed positive correlation with traditional markets and the crypto market” exists that could see BTC rally again next month.
The FTSE 100 reached a new 20 month high, accompanied by the US-based S&P 500 rising to 8 percent in less than a month.
Mr Morris said: “This could be the impetus to give Bitcoin its next push higher.”
He had a similarly optimistic outlook for Ethereum, which he believes is sustained by another market force.
ETH surged to a new all-time high of $4,656.48 (£3,449.76) on November 3 but quickly readjusted.
Over the last few hours, it has dropped from roughly $4,500 (£3,333.83) to its current value of $4,409.82 (£3,267.02).
While potentially disconcerting for some, a new process behind ETH has kept it well-adjusted.
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The update managed to cause a rapid surge in ETH, which has since kept it operating within a new, higher range.
Mr Morris said this could support ETH in its current place behind BTC.
He said: “Since implementation, over $3 billion worth of Ethereum has been burned and data from Ultrasound Money reveals that 15,000 ETH is being burnt daily.
“This supply and demand dynamic is seen as price supportive for ETH and could keep the current rally for the 2nd largest digital asset intact.”
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