Bitcoin has been in the news lately and it is because investors and crypto enthusiasts believe that it is going for another major correction before starting its mid-term rally. The market was down for most of the week and it went 80% below normal. However, it has managed to do a complete turnaround within just two weeks of stability. That is one of the most remarkable things that Peter Brandt, a veteran in the crypto and FX market has seen in his years of trading. However, he believes that such a stint can happen again because it is crypto and honestly, anything is possible with crypto.
Ethereum is expected to go down by a record margin
Ethereum is down another 10% as the global crypto market goes into ‘panic mode’
Although Bitcoin has managed to do a reversal in a short period of time, the pictures are not so bright for Ethereum. The experts believe the correction of Ethereum is going to be a record-breaker this time and it will be bigger than what Bitcoin did. With Bitcoin coming to a stable position even after the recent correction, things seem to go downhill for Ethereum. Alex Krüger, another veteran trader has cited three reasons why Ethereum will fall short of Bitcoin even in this quarter. One of the reasons is that there is twice as much pressure from the natural sellers than what the market cap is. Plus, ETH has number of competitors compared to Bitcoin. The latter is almost running a monopoly because of its brand recognition.
In addition to the brand recognition, the introduction of Bitcoin Loophole trading software is another reason why Bitcoin will continue to dominate the competition. Interested traders can now trade using this software application from their mobile phones. Even if the crypto market sees another correction in this mid-term, Bitcoin will be able to revive its position but not Ethereum. ETH will continue to remain vulnerable because of its lower odds.
Krüger has cited another reason why Bitcoin is dominating the market. Bitcoin has a PoW focused payment network blockchain that makes the transaction secure. Ethereum, on the other hand, has a PoS algorithm that faces tough competition from Tron, Cardaron, and EOS – three protocols that have been designed to help large-scale decentralized applications.
The future of the market
The bitcoin bounce may have legs: Crypto bull makes the case for a run back up to $10,000
With such turmoil in the crypto market, investors are looking at what experts have to say about the future of both Bitcoin and Ethereum. Erik Voorhees, the CEO of ShapeShift says that the worst period for the midterm is over. However, Krüger and Brandt think that the recovery made by Bitcoin in the two weeks is not enough and cannot be considered a real recovery. However, they do believe that Bitcoin will regain stability in the region of $6000 and $7000 and that will be consistent for a significant period. If it can sustain the $7000 price range in the month of September and retain its $250 billion market valuation, then it will be able to undergo its midterm recovery without having to go into another major correction.