The global crypto exchange Binance just released its latest trading report, analyzing the state of Bitcoin, Ethereum and the altcoin markets.
The report highlights Bitcoin’s dominance in October and early November, which burst the (decentralized finance) DeFi bubble and pushed the price of many crypto assets lower.
“Large-cap cryptocurrencies such as ETH, XRP, BCH, LTC, and LINK delivered modest gains in October, but have failed to break new highs as trading activity shifted away to Bitcoin. For many months, altcoins have been the key driver of returns for crypto traders.
Thus, it is no surprise that altcoins have appeared to be losing steam and disharmonized from Bitcoin’s rally… Since the correction in early September, most DeFi tokens have displayed a complete turnaround, erasing 70-90% of their gains.”
Analysts at Binance are now expecting Bitcoin to enter a cooldown period after its sudden burst to $16,000.
They point to BTC’s recent consolidation range in the $10,000 to $12,000 region as an example of what may be next for the leading cryptocurrency.
As for the future of the altcoin market, the exchange points to the coming launch of Ethereum 2.0 as a potential catalyst for both ETH and the altcoin market at large.
“The upgrade is expected to have a positive impact on ETH as it will significantly boost the network’s compatibility, scalability, and security.
Additionally, the upgrade will shift Ethereum’s consensus mechanism to a Proof-Of-Stake, incentivizing investors to keep and lock-up their Ether for staking rewards. This will then reduce the supply of ETH tokens while demand continues to grow strong as large investors flood in seeking steady gains…
Considering these catalysts, the upgrade could drag out ETH from its recent slump and potentially inject more positive sentiment into the altcoin sector.”
You can check out the full report here.
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