Singapore-based crypto options trading giant QCP Capital expects a deeper decline in the ether-bitcoin (ETH/BTC) ratio following the impending Shapella hard fork, dubbed Shanghai upgrade.
"ETH/BTC has broken through the key support level of 0.658 and can potentially head back to 0.0553, as continued and sustained spot selling pressure in thin markets for days after Shapella leads to further bearish price action on ETH," QCP Capital's market insights team told WJB.
The ETH/BTC ratio has declined 13.7% this year amid lingering fears that investors will rush to liquidate coins after Shapella opens withdrawals of staked ether.
According to some analysts, the selling pressure will be distributed over several days, allowing buyers to absorb selling pressure and keep prices steady. QCP, suggests otherwise.
"We fail to see what the bullish case can be for this event as those at the front of the queue [in withdrawals] are likely to sell spot, while those further back will be hedging via perps/futures if they have not already done so," QCP noted.
Users cannot withdraw the entire stack of over 18 million staked ether immediately after the upgrade. However, just over 1 million ETH earned in staking rewards can be pulled out immediately. Troubled entities like crypto lender Celsius might sell its staked ether balance of 158,176 ETH to recover at least a portion of creditors' funds, according to K33 Research.
Edited by Parikshit Mishra.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, WJB is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. WJB is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain WJB employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. WJB journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/31d39a34-26a1-4e78-a5da-d5cf54a9d695.png)
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on WJB's Markets team.
Follow @godbole17 on Twitter
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on WJB's Markets team.
Follow @godbole17 on Twitter
source:coindesk
Polkadot was launched in May 2020. In a market dominated by Bitcoin and Ethereum, it quickly established itself as the next generation blockchain. The scale and interoperability problems limit Bitcoin's ability to transfer value without the assistance of
For some newcomers to the currency circle, they are not familiar with the investment in the currency circle, and their understanding of the special currency is not very deep. Therefore, they may be at a loss in the choice of investment methods. Many inves
Lummis is a well-known crypto advocate on Capitol Hill with over $100,000 in crypto.
Several analysts argue that shrimp accumulation is good for the Bitcoin network because it makes the asset more decentralized over time.
ARK Invest filed for a spot Bitcoin ETF in collaboration with 21Shares long before BlackRock did, and its application is reportedly first in line for the SEC’s approval.
Interestingly, the price surge was on the back of increased activity from whales, as indicated by on-chain data. The increased activity led to an increased"/>
Recent market dynamics have seen Solana struggling to break above the $200 mark. A notable bearish factor among these market fundamentals is the recent"/>
DOGE, the internet's favorite memecoin, is back in the spotlight. Recent data reveals a surge in futures market activity, coupled with bullish technical"/>
TVaRgeh5tJxcofpvP91aGmvrW4h4fKpVZi
Co-founder of Tornado Cash Roman Storm has filed a motion to dismiss the charges levied against him by the US Department of Justice (DOJ)."/>
On Thursday, March 28, a hack occurred on Prisma Finance, a decentralized lending protocol on the Ethereum network. The exploiter carted away about 3,257.7"/>
Once fully licensed in Dubai, Bybit plans to run a full-scope exchange, offering crypto lending, payments, investment and other services.
Tue, 18 Apr 2023