Ethereum vs. Bitcoin: Did ETH/BTC just bottom as Ether eyes $2K?

11 Mar 2021, 09:14 · Views 2,487

Photo: Coin Telegraph

(Coin Telegraph) - Bitcoin’s price has been broken past a major resistance level of $52,000 in the past few days and is approaching the all-time high region.

However, other cryptocurrencies are rallying heavily as well. In the recent months, the market has seen massive surges for Cardano's Ada, Polkadot's DOT, and Cosmos' Atom.

These altcoins have been seeing impressive gains as Ethereum (ETH) faces scalability issues and high network fees. This is resulting in negative sentiment on social media, where some investors and traders are doubting whether a bullish breakout will happen for Ethereum price.

Ethereum holds a critical level for continuation

The U.S. dollar chart for Ethereum shows a major pullback in February and March, with ETH price dropping from $2,000 to $1,300. This was a 35% correction and was pretty healthy for the bull market before it can resume.

The bull cycle is intact as long as it doesn't lose the critical levels, namely the $1,300 region, which was confirmed during this latest pullback.

Read more from the original article here.

면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.

이 글이 마음에 드시나요? 작성자에게 팁을 보내 감사의 마음을 전하세요.

더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.

컨텐츠 관련

Cryptocurrency

1.3K Posted · 1.8K Followers

BTC/USD

2,782 추종자

ETH/USD

766 추종자

더

Ripple leads way as most big cryptocurrencies post declines

Cryptocurrency

Bitcoin tops $25,000 level for first time since early June

Cryptocurrency

‘There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology’: SEC chief Gary Gensler

Cryptocurrency

Bitcoin and Stocks Are Falling Together Again. What’s to Blame.

Cryptocurrency

Any individual who followed Matt Damon’s advice that “fortune favors the brave” during the Super Bowl and invested $1,000 in the crypto markets have seen staggering losses, with the value of those assets dropping more than 60 %. This small slice of activity in the crypto markets demonstrates two major issues with this new asset class: its historical volatility and a lack of education about these assets among most would-be investors. Given that, as well as a cautionary regulatory environment, it’s clear that at this time, crypto has no place in defined-contribution plan lineups. This hasn’t stopped some DC plan administrators from soon making digital assets available to plan participants, if the plan sponsor decides to make this feature available. Read: This is why bitcoin won’t ‘diversify’ your 401(k) Defined-contribution plan sponsors will likely keep a close eye on these moves to make crypto more accessible to DC plan participants. For now though, we at Mercer do not view cryptocurrency or crypto-related assets as suitable investment options in a defined-contribution plan. Here are three key reasons why: 1. Volatility Proponents of cryptocurrencies point out that Bitcoin last year became the highest performing asset class of the decade, with an annualized return of 230 percent, when its price reached $60,000. But since then, its price has dropped precipitously, sitting at around $21,500 as of July 27. Of course, much of the stock market has entered bear market territory, bringing crypto along with it. But volatility is par for the course in crypto. According to a Mercer analysis, the annualized standard deviation of monthly returns of Bitcoin from 2015 to 2020 was approximately 80 percent, at least four times the volatility of publicly traded equities. Many experienced crypto investors may understand that these new markets reach new highs then crash in cycles, but it’s likely that most defined-contribution plan participants do not. Most participants don’t have the appetite for such high volatility—after all, as the primary vehicle that people rely on for their retirements, DC plans generally avoid making highly volatile asset classes available to participants on a stand-alone basis. Read: Why target-date funds may be sabotaging your retirement 2. Lack of education Given the amount of mainstream coverage around crypto, it can be assumed that these assets have become mainstream. However, only 16% of Americans said last year that they have invested in them. Based on Mercer’s work with some of the largest defined-contribution plan administrators, much is still to be done to educate plan participants on building a portfolio with crypto assets. This is vital, as learning about these markets can be confusing and time-consuming—a sobering fact in the face of Americans’ lack of financial literacy and their desire for professionals to help them plan for retirement. Learn how to shake up your financial routine at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. Join Carrie Schwab, president of the Charles Schwab Foundation. 3. The regulatory environment Although many in the crypto industry cheered when President Joe Biden signed an executive order in March instructing federal agencies to study and report on digital assets, there are plenty of reasons to be concerned that the regulatory environment around crypto may create more confusion in the markets. The day after the president’s order, the Department of Labor warned 401(k) plans to “exercise extreme care” about including crypto in portfolios. The agency wrote, “At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies.” The department cited crypto’s speculative and volatile nature as well as the difficulty to understand them as factors in its warning. (There is pending litigation against the DOL seeking to vacate this guidance, stating that where “assets may be invested should not be subject to the arbitrary whims of an agency that has no such authority.”)

Given the rapid decline of crypto markets, many believe regulators may soon place restrictions on the market. Hence, it’s prudent for defined-contribution plan sponsors to take a data-driven approach to including these assets in DC plan menus, despite a likely small minority of participants who may be requesting them. The crypto markets are constantly evolving, so it’s possible that the factors outlined above may be mitigated. But until then, we at Mercer feel that crypto does not belong in retirement accounts. Holly Verdeyen is partner and U.S. Defined Contribution Leader at asset management firm Mercer. Click here to see Mercer’s important notices.

Cryptocurrency