Cryptographic prices have fluctuated in both directions since the beginning of the week. The decisive trend could not be strongly established in itself. Nonetheless, the cumulative valuation of all coins has recently turned below $ 1 trillion, highlighting macro weaknesses. In the face of continued decline and flow, funds are shuffled within the ecosystem itself. Most flows to Bitcoin have come via the tether route in the last 24 hours.
On the contrary, injections via the Fiat route were relatively few. Meanwhile, market participants are also converting from Bitcoin to other stablecoins such as Ethereum and Binance’s native BUSD.
Fuel has been added to certain speculations during the replacement of funds. Asians are dumping cryptocurrencies, but Western participants are buying the same speculation during trading hours in the east. But does the same really apply to HODL?
A recent CoinMetrics report showed a time-based pattern and revealed some interesting trends. The activity level of some crypto assets shows a lot of clustering at certain times of the day, but at other times it is dull.
Compared to the West, the East is very strict about accepting cryptography. For example, China announced a crackdown on Bitcoin mining last spring and summer. Investors on their side are also much less concentrated on the eastern side of the sphere than on the western side. The same has had a direct impact on trade activities. Every CoinMetrics,
“Most of Bitcoin’s activity is currently concentrated during European / US business hours, and the percentage of activity during Asia / Pacific time has dropped significantly …”
Unlike Bitcoin, Ethereum does not always show a strong daily pattern. Balance updates are somewhat distributed, as shown below.
However, in terms of price, the movement of ETH has gained momentum and vitality in recent years compared to the movement of Bitcoin. From late June 24th to mid-June 26th, Ethereum fell nearly 19%, but Bitcoin lost only 10% of its value. However, there were no dumps in the Asian market during this period, and the buying pattern in the US market took a concrete form. Nevertheless, it should be noted that Ethereum and Bitcoin registered some exceptional green candles on July 25th, and almost the same thing happened late in the EST.
Alternatives: Litecoin, Bitcoin Cash
Alts are not always on the same path. For example, consider Litecoin. Every CoinMetrics,
“Litecoin shows some interesting behavior that clusters between approximately 1:00 and 3:00 UTC, which coincides with the opening of the Asia Pacific market and is crowded around an hour bin. I am. ”
That said, that doesn’t mean that Western participants have completely washed their hands off this altcoin. The fair rise in Litecoin has also been pointed out in the LSE and NYSE sessions.
Bitcoin Cash has three clusters at 3:00, 12:00, and 20:00 UTC as part of it. The same shows the fact that activities are most focused on sessions in Asia / Pacific and London. However, compared to last year, their activity seems to be considerably restrained.
As a result, some clustering trend patterns and increased activity have recently been noted, but there is no clear evidence that one participant is buying the other dump. As highlighted in the price chart above, rising activity does not necessarily correspond to rising prices.
And recently, color streaks have become more predominant on price charts, indicating a rollover of positive / negative market sentiment from one trading session to another. Therefore, with recent developments in mind, the guessing of the problem does not always apply to HODL at this time.