Bitcoin, Ether, Dogecoin Struggle Overnight, But These Smaller Cryptocurrencies Are Surging
Most major crypto assets are starting the day off with a dip.
Bitcoin shed off 6.51% over the past 24 hours, confirming predictions of a slight retraction from the mid-$30,00 range. The leading cryptocurrency is trading at $32,628 as of 7:43 a.m. ET according to Coinbase. Ether, which had been outperforming bitcoin, also fell by 9.91%. dogecoin, XRP, polkadot, and uniswap are down by more than 7% on the day.
“Bitcoin continues to trade choppy and though we have seen an upward bias in the last few days it will take some work for BTC to break above the $42,000 mark,” wrote Pankaj Balani, CEO of crypto derivatives platform Delta Exchange, in a message to Forbes.
Despite the pullback there are some signs for optimism.
According to Bybit, a cryptocurrency futures trading and information platform, funding rates for bitcoin and ether perpetual swaps on exchanges including Binance, OKEx, Huobi, Bybit and FTX are mostly positive, suggesting speculators are bullish and long traders are paying traders, who are short.
Additionally, a highly anticipated Ethereum upgrade introducing a new fee structure, Ethereum Improvement Proposal (EIP) 1559, went live on Ropsten testnet on June 24 and is scheduled to launch on the mainnet on August 4. The update is expected to make Ethereum’s transaction fees less volatile and more predictable, while adding an element of deflation to the second-largest crypto asset by market capitalization.
Additionally, U.S. banking powerhouse Goldman Sachs issued a note on Tuesday, saying ether “currently looks like the cryptocurrency with the highest real use potential”, citing Ethereum’s role in the development of smart contract applications, according to Insider’s report.
Some assets are bucking the negative trend. Axie (AXS), the governance token underpinning the blockchain-based virtual game Axie Infinity is up 66% over the last five days. Additionally, MANA, the governance token for the virtual world Decentraland, has risen 30% this week.