Welcome to our Bitcoin & Altcoin Report of KW 20! – In the usual fashion, we want to give you together with the Team of Accointing an insight into the key metrics, analysis and fundamental data. Since our last Report two weeks ago, a lot has happened in the world of Bitcoin, Ethereum and co.: the Bitcoin would be here to call Halving, and the other is the billionaire Paul Tudor Jones announced the entry of hedge funds in future products. In Parallel, the Bitcoin exchange rate picks up again and attacked the $ 10,000. Officially, we are now in the “Post-Halving” Phase and, therefore, we want to throw our views in today’s Report not only BTC, but also on its relationship to the other Altcoins (=Bitcoin dominance), as well as the Ethereum Whales.
- 1 Bitcoin exchange rate: correlation, BTC, Gold and S&P 500
- 2 Bitcoin dominance: a Positive Trend since 2 years
- 3 Ethereum Whales in the Overview: Everything
- 4 Fear and Greed Index: fear in BTC?
- 5 More BTC from the Exchanges flow from or to?
- 6 Conclusion: decoupling and lower supply
Bitcoin exchange rate: correlation, BTC, Gold and S&P 500
A mandatory part of the Reports, the macro-market economic views on precious metals and us stocks. For this purpose, we take Gold and the S&P 500 as representative of the respective asset classes. In the past 4-8 weeks we have seen a historically above-average correlation between Bitcoin, Gold and the S&P 500. But just in the past two weeks, BTC was able to create a Turnaround and more of the dynamics of the stock market decoupling.Nevertheless, a certain correlation is present, although it has decreased. In the framework of the Halvings Bitcoin could develop their own Momentum. Thus, the volatility increased. We hope that the correlation is decreasing, and BTC developed more in the direction of the random Asset.Now, if we look back to the classic crypto market and start with the relationship between Bitcoin and the other Altcoins.
Bitcoin dominance: a Positive Trend since 2 years
The following Chart shows the development of the Bitcoin dominance over the last two years. We can see a clear upward trend of the BTC from 36 to the current level of 68 percent has brought. At this point it should be reminded time and again that the majority of the Altcoins are not from the Crash at the beginning of the year of 2018 were able to recover and remains significantly (75-95%) below its all-time high record. As a result, many investors have realized the “true value” of Bitcoin and its Alts in BTC exchanged.The Narrative of the digital Store of Value is only reinforced. The global turbulence in the financial market have encouraged some investors probably the fact that the “safest” Asset within the crypto market Bitcoin switch:.Nevertheless, we must ask ourselves the question of whether this Trend will continue or whether investors in the case of a continuation of the consolidation or sideways movement of Bitcoin price be require in Altcoins to achieve in the short term, higher returns?Find the right one for you tax Tool. In our tax tool comparison for Bitcoin & Co, you can find out which providers are there and where are their Strengths and weaknesses lie. Choose currencies for you the optimal Tool for easy and hassle-free tax return for Bitcoin and Crypto. For comparison go.
Ethereum Whales in the Overview: Everything
In this section, we want to take a look at Ethereum. More precisely, we compare the Ethereum Whales with the Bitcoin Whales. For this comparison, we define the Whale, a Bitcoin and Ethereum as an address with more than 10,000 BTC or ETH. The period we put in about 4 years, starting in 2016, until today.The question we ask ourselves is: Is it nowadays more addresses with a high number of BTC/ETH than a few years ago?We see that there are currently around 1050 addresses the more than 10,000 ETH hold. The Peak was around 1100 addresses. Furthermore, we can say that the level since the Q3 of 2017 in the range of 1025 to 1100 addresses.In the case of Bitcoin there are currently 110 addresses that hold more than 10,000 BTC. The all-time high was at about 125 addresses.
Ethereum vs Bitcoin Whales: What can we conclude?
First of all, we can say that “the Whales” not much has changed. Regarding Ethereum, the number of Whale addresses is as described above, in the last 2.5 years, pretty consistently. The Belief in the project is intact – fear or panic, you can not recognize. Add to that a decline in the addresses of the projects is also with the movement of the ETH in the direction of the DeFi-explainable.In short: In the case of Ethereum, everything seems to be the same. The expectations of Ethereum 2.0 are still high, and in the case of a successful Launch of the new Blockchain, a bullishes scenario for the ETH course can enter into force. What can we say to the other Altcoins? – Very little, because in the light of the Bitcoin Halvings, the eyes of the majority of the crypto world were directed to BTC.In addition to projects such as Ethereum, Cardano, IOTA, Chainlink or Tezos there were very few other Altcoins that have been reported. After how many altcoin projects on their own product, or a market-ready solution. Also, regarding the keyword, “Product-Market-Fit” fight some of the Altcoins with the lack of demand.We jump back to Bitcoin thoughts now, and take a look at the Fear and Greed Index.
Fear and Greed Index: fear in BTC?
The Fear and Greed Index is currently at a value of 40. Expressed verbally, this would correspond to even “Fear”, so do not be afraid. In my opinion, you should not provide this metric in the light of current rate levels, however, a lot of importance.It is established that the Bitcoin price is currently in a Phase in which either a Breakout or Breakdown. The battle for the 10,000 mark will be decisive for the development in the coming days and weeks.
More BTC from the Exchanges flow from or to?
Last, but not least, we take a look at the net balance of Bitcoin on Exchanges. In other words: Have moved more BTC in the direction of the stock markets or more BTC out of the exchanges taken?We see clearly that since mid-March, a negative net dominates the balance sheet and, therefore, more BTC from Exchanges to be taken, as you flow on this. Thus, the available supply is reduced to the exchanges so what is naturally good for the Bitcoin price.
Conclusion: decoupling and lower supply
We can hold on to at the end of the report the following points: Bitcoin correlates less with Gold and the stock market. This is a positive sign, we have long been waiting for. The supply of BTC is not only due to the Halving of low, but also by the negative net balance on the Exchanges. Thus, the selling pressure decreases, and the Bitcoin exchange rate should benefit.With regard to the Bitcoin domination, we see a constant upward trend, which shows that BTC continued to outperform Austria many Altcoins. The persistent question is whether the upward trend in the context of the Store of Value Narrative remains the same or we will see a reversal of the trend, and thus an inflow in the Altcoins.All in all, we see bullish times for the crypto market, and in 2020 is ready for more Surprises!Did you take care of is actually your Bitcoin tax? We recommend you have a Crypto portfolio tracker that does exactly that for you and you optimize your taxes and your portfolio helps: Accointing.The Team has for many years been in the Bitcoin scene and the pain of end-users, especially in the area of control and Tracking with Bitcoin & co. knows The basic functions of Accointing are free of charge, but with our discount Link you will get 10% discount on tax Reports and other useful Features. Get the Maximum in your tax return out and sign up today! Sign up now and save!You have any questions or suggestions on the Bitcoin exchange rate & Altcoin Report? – More information on Accointing you’ll find in the Rest of the on www.accointing.comkomm in our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image source: Shutterstock, Glassnode, skew.com alternative.me, blockwaresolutions.com)