The capital moved from Bitcoin has mainly benefited Ethereum’s native cryptocurrency Ether. Despite the capital turnover, Bitcoin’s saving behavior continues to predominate.
The price of Bitcoin (BTC) currently remains sideways between USD 53,000 and USD 58,000. At the same time, some of the capital that users invest has been moving to other cryptocurrencies. This capital turnover in Bitcoin has primarily benefited Ethereum’s native cryptocurrency Ether (ETH), according to Glassnode.
Glassnode’s weekly report on the cryptocurrency market indicates that the overall situation remains bullish for Bitcoin. Furthermore, the saving (hodling) behavior of the pioneering cryptocurrency continues to be predominant. However, some of the capital that users invest in BTC has had a turnover, mainly moving to ETH.
The latest movements of BTC point to price support around USD 53,000 (right in the zone of USD 1 trillion total market capitalization), according to the firm’s estimates. However, the Bitcoin moved above that price (just over 3% of the supply) has generated resistance to breaking the mark of USD 60,000 per unit again.
The Movement of Bitcoin Has Benefited Ether and Dogecoin
The said capital turnover is due to the movement of funds in these ranges. “ETH has been the main recipient of a good part of this capital turnover. Additionally, it has shown extraordinary price performance in the last three weeks,” according to the report. These moves have also benefited the meme cryptocurrency Dogecoin, which peaked above USD 0.7 per unit.
The firm uses a graph to show the correlation between a larger amount of old BTC spent and the increase in the price of ETH. In recent days, Ethereum’s cryptocurrency exceeded USD 4,000 for the first time in its history.
The researchers note that ETH metrics support the price behavior of the last few weeks. This is particularly the case with a new all-time high of 1.63 million transactions in a single day. In that way, the cryptocurrency exceeds the all-time high of 2017 by more than 22%.
The Bullish Scenario Is Still Ongoing for the First Cryptocurrency
There has been a slight increase in the movement of Bitcoin in recent weeks to the benefit of ETH. However, the saving of BTC is still the trend in the medium and long term, according to the researchers.
Bitcoin owners keep their holdings of this cryptocurrency and those of ETH in store. They are waiting to capitalize on higher prices during this bullish run. The behavior of massive withdrawals from exchanges like Coinbase seems to coincide with that attitude of investors.
Analyst and metrics creator Willy Woo foresees a return of the capital that users have invested in altcoins towards Bitcoin. His estimates indicate that the main cryptocurrency on the market is currently below the value that it should be. Furthermore, that flow of capital from altcoins to BTC would make it return to the bullish path to reach new all-time highs.
By Willmen Blanco
