Quant Suggests Bitcoin Will Be Back In The Driver Seat After Ethereum Merge
A quant has suggested that Bitcoin will again become the driving force in the crypto market once the Ethereum merge hype dies down.
Bitcoin Share Of Crypto Trading Volume Already Seems To Be Overtaking Ethereum’s
As explained by an analyst in a CryptoQuant post, there are some signs that point to BTC surpassing ETH once more to be the dominant power in the market.
The relevant indicator here is the “dominance by volume,” which measures what part of the total crypto trading volume is contributed by each coin in the sector.
The “trading volume” is a metric that measures the total amount of crypto being involved in transactions in spot markets.
Now, here is a chart that shows the trend in the dominance by volume for both Bitcoin and Ethereum:
The value of the metric for BTC seems to have crossed over that of ETH in recent days | Source: CryptoQuant
As you can see in the above graph, the Bitcoin percentage share of the trading volume was significantly higher than Ethereum’s during the start of July.
However, as the middle of that month approached, ETH slowly started surging up and passing above the BTC volumes.
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In August, the ETH dominance by volume remained higher than BTC’s for the entire month, save for a couple brief spikes for the latter.
This continued into September, until just a few days ago. The reason behind Ethereum leading the bear market for almost two months was the hype created by the upcoming PoS merge.
The quant believes that once the merge is finished in approximately two days, this narrative that kept the crypto’s volumes up will be gone.
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Around three days ago, BTC’s share of the trading volume crossed over that of Ethereum’s and has since stayed up. The analyst points out that this is one of the early signs for a shift in the investor behavior around the merge launch.
BTC overtaking the volumes on exchanges now means soon after the merge, Bitcoin will be back to being the main driving force in the crypto market.
At the time of writing, Bitcoin’s price floats around $22.2k, up 13% in the last seven days. Over the past month, the crypto has lost 7% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has been observing some upwards momentum during the last few days | Source: BTCUSD on TradingView
Featured image from Peio Bty on Unsplash.com, charts from TradingView.com, CryptoQuant.com