Bullish price expectations as BTC miners hold Bitcoin off the exchanges
Altcoins vs. Bitcoins: Is there a shift in cryptocurrency investment trends?
Bitcoin dominance in the digital cryptocurrency world falls to 48% as Ethereum and Binance Coin price hit new highs amidst the growing investor’s interests and the altcoin season. The BTC dominance is down from 73% since the beginning of 2021.
Bitcoin spiked to $56,000 on Thursday before declining to $54,425 as of April 30th 2021, 1:34 PM IST. The largest cryptocurrency has fallen by over 10% in the past month recording its worst month since the beginning of 2021 but the indicators are overall bullish as crypto miners hold Bitcoin and reduce supplies on crypto exchanges.
Bullish price expectations as BTC miners reduce supplies on exchanges
As per the data from Glassnode, the 7-day moving average of the BTC volumes on a daily basis has reduced from 805 to 152, a decline of 80% since Feb 23. This metric is a good indication of the miner sentiments surrounding the price expectations. If the miner decides to hold BTC and reduces supply from exchanges, it is a good indication of a bull market with the anticipation to sell it later at a higher price.
Binance Coin grows by 1500% owing to the success of Binance Smart Chain
Binance Coin (BNB) is currently ranked as the 3rd largest cryptocurrency in the market cap with a 100% rally in April 2021. Binance token, the native token for Binance exchange has recorded impressive gains. The token, used for offsetting trading fees on the exchange, has gained over 1550% returns since the start of 2021, with its current dominance by market cap at 4.4%.
Much of its success can be attributed to Binance Smart Chain which is being used for DeFi projects, an alternative to Ethereum blockchain. It is being speculated that BSC could become the main settlement layer as the transaction volumes cross those on the Ethereum blockchain due to the rising Gas on Ethereum. As per the data from BSCScan, the daily transactions crossed the 9 Million mark on BSC on April 21, which is an increase of over 25,000 times YTD.
Binance Smart Chain Daily Transaction Chart
Ethereum price surge as EIB plans sale of digital bond on Ethereum blockchain network
With the Ethereum price surge, the cryptocurrency crossed $2,800 on Thursday ahead of the news that European Central Bank is launching its digital bond sale on the Ethereum network. Another development that Wisdom tree, the world’s biggest asset manager listed in Frankfurt and the Swiss Stock Exchange in Zurich, its new Ethereum ETP on Deutsche Borse’s Xetra market added to the price increase.
Growth in the DeFi space, developments of the NFTs, Ethereum’s protocol upgrades and the technical proposal EIP 1559 to fix the Ethereum blockchain’s problematic capacity constraints have further bolstered the Ethereum growth.
The top Altcoins in 2021
Apart from Ethereum and Binance Coin, let us look at some of the best altcoins to track and invest in. Litecoin (LTC) is currently trading at $264, up by 16% since last week. XRP is up by 49% in the last week currently trading at $1.53, and Tron is up by 30% in the past 7 days. Chainlink (20%), BCH (21%), EOS (22%), BAT (21%), Doge(37%), DOT (23%), XLM (29%) and Cardano (33) have all recorded significant gains.
Top trading pairs on CoinDCX this week
Losing trading pairs on CoinDCX this week
Bitcoin Prediction in 2021
In conclusion, the crypto miner’s activity of reducing BTC supply from the crypto exchanges is a good indication of an upcoming bullish crypto market. With Ethereum and Binance Coin creating record-breaking highs, it looks like the top altcoin season has kicked in. A significant rise in the daily transactions on the Binance Smart Chain (BSC) is indicating a shift from Ethereum to BSC as a preferred protocol for DeFi mainly due to the high cost of gas on the Ethereum network. In a nutshell, the strong indicators, further developments and rising use-cases of blockchain technology, and rising institutional interest are all indicating towards “BTC to the moon”!