In the last seven trading days, the price of Bitcoin has lost around 20% of its value compared to almost 30% of Ether.
Risk-off sentiment and selling pressure in the global cryptocurrency market showed no signs of abating on Saturday, with Bitcoin price falling 4% and Ether 7% in US afternoon trading. after a brutal week. The price of Bitcoin, which is the largest cryptocurrency by market value, was trading at around $35,300. It had previously touched $34,042.77, which represents a loss of more than 50% from its all-time high last November. And he's not alone: โโAs crypto traders reacted this week to aggressive signals from the Federal Reserve, as well as new regulatory suggestions from the White House and the threat of an outright ban in Russia, the declines in Ether, the second largest token, and in newer coins they have outpaced Bitcoin's decline.
Over the last seven trading days, Bitcoin has lost around 20% of its value compared to nearly 30% for Ether. Solana SOL and DeFi-play Avalanche token AVAX are down almost 38% each. And the removal of memecoins has been profound: Dogecoin is down 30% for the week, while Shiba Inu is down 38%, according to CoinMarketCap.
Crypto "is a risky asset through and through," Starkiller Capital's Leigh Drogen said in a Bloomberg TV interview with Caroline Hyde. "It's even more of a risk asset now that most of the crypto market cap is Ethereum, Solana and all sorts of other things that are basically technology where we're driving massive global growth assumptions into the present."
A key technical aspect to watch is the ratio of Ether to Bitcoin, according to Amy Wu Silverman of RBC Capital Markets. After trading above 0.07 for several months, Ether has fallen to the lowest level relative to Bitcoin since October. It was recently at 0.069.
"Now, it's officially a risk-off correction across the board," Wu Silverman wrote in a note on Saturday. "There is nowhere to hide."
The next level to watch is 0.055, according to Wu Silverman. "Look at the Ether-Bitcoin ratio of .055-.088," he wrote. "The .055 MUST HOLD."
Ether's price drop relative to Bitcoin also caught the attention of Noelle Acheson, head of market research at Genesis Global Trading Inc. For her, it's a reminder that Ether is even more vulnerable than Bitcoin to macro fluctuations in appetite. for the risk.
โThis reminds us that BTC is a risky asset that is affected by risk-off sentiment, but ETH is even more so (it has lost over 40% of its value in the last 30 days!)โ Acheson wrote in an email. โIt is definitely strange to see BTC outperforming today.โ
