Loading...The analyst Chris Burniske argues that BTC and ETH are heavily oversold. Bitcoin lost 83% from all-time-high, Ethereum followed the case with 94% decline. Burniske took into account several metrics such as Number of Daily Transactions, Estimated Daily Transaction Value (USD), Daily Unique Addresses Used for Bitcoin, Number of Daily Transactions and Total Daily Gas Used for Ethereum. He also tracked down hash rate for both cryptocurrencies.
He found out that Bitcoin and Ethereum still, on an average have 250,000 and 500,000 thousand transactions every day which is only down 41% and 52%, respectively from the peak value. He also pointed that 26% of the Bitcoin blockchain activity remains since the peak. In the case of Ethereum 93% of the network activity remains since the peak. At last Bitcoin hash rate decreased only by 10%, and as far it concerns Ethereum blockchain, one may see that developers’ activities has shown only rise on year-to-year basis. Burniske summarizes it just saying that “Placing these points in the context of the idea that “theory follows price, price follows theory,” it’s clear to me that Mr. (Crypto) Market has only a vague idea of what he’s doing right now.”
Meanwhile SFOX company fill the gap by starting to provide monthly review of cryptocurrencies volatility. In the issue dedicated to the situation in November, SFOX found that “Bitcoin Cash led in volatility throughout November: its volatility relative to Bitcoin volatility doubled in the time leading up to the Bitcoin Cash fork.” SFOX also breaks down the main reasons for such volatility: “The three market-wide volatility spikes in November corresponded to: (1) market uncertainty leading up to the November 15 Bitcoin Cash fork, (2) the subsequent hash war between the two blockchains that forked from Bitcoin Cash, (3) the SEC announcing settlements with two major ICOs, and (4) reaffirmations of crypto’s staying power and institutional interest.”
