Bitcoin slipped under the $30,000 level in early European hours on Wednesday, with overall market capitalization falling 1.2% in the past 24 hours. Ether traded just over $1,860, down 3%, leading the drop among major tokens. Ether dipped ahead of the Ethereum network’s major upgradetaking place later today at 22:27 UTC (6:27 p.m. ET). Exchanges liquidated just over $30 million worth of leveraged futures bets during Wednesday’s price drop, of which, more than 90% were longs or bullish bets. In addition to the Ethereum network upgrade, traders were likely also taking profits ahead of the U.S. Consumer Price Index (CPI) report for March, which is due at 8:30 a.m. ET.
Ether’s 24-hour price chart
A report by blockchain analytics firm Glassnode estimates at least $300 million worth of selling pressure after the Shanghai upgrade today. “We estimate a total of 170K ETH intended to be sold after the upgrade,” Glassnode said in a report. “We project that only 100K ETH ($190M) of the total accumulated rewards will be withdrawn and sold.” Glassnode said the estimate was made based on a “50% withdrawal credential update, our segmentation of depositors, and assumptions regarding investor conviction, and profitability” by using wallet behavior, period of staking and presence of liquid staking derivative products, such as Lido.
Tron’s TRX token has been delisted by Binance.US. This comes weeks after the U.S. Securities and Exchange Commission sued Tron’s Justin Sun over allegations of selling and airdropping unregistered securities, fraud and market manipulation involving the TRX token. TRX dropped 6.4% on the news, according to CoinDesk market data. Binance.US says trading for TRX will end on April 18.
Market Insight: Analysts Split on Market Trends Following Shanghai
Shanghai (Unsplash)
The Ethereum blockchain’s Shanghai upgrade, or more accurately called “Shapella,” is almost here. The backward-incompatible hard fork will allow users to access some $30 billion worth of ether locked in the network since the tail end of 2020.
Some observers expect a ether price swoon after the upgrade as users liquidate their holdings while others believe the expected uptick in the selling pressure is already baked in and the market will bounce after the event in a classic “buy the news” move.
Henry Elder, head of decentralized finance at Wave Digital Assets, sees the upgrade as a clear “sell the news” event for ether and for governance tokens of liquid staking solutions like Lido, which have been rallying since early January in anticipation of the hard fork.
The chart shows weekly changes in the total crypto market valuation since 2018
On Tuesday, market valuation surpassed the $1.2 trillion mark, ending weeks of consolidation and hitting the highest since June.
The move higher is reminiscent of the bull revival seen four years ago.
“The April-May 2019 framework is playing right on cue with the crypto finally breaking the $1.15T on the global MCAP index after 26 days of battle,” Decentral Park Capital’s portfolio manager Lewis Harland said.
“This break could echo the April-May 2019 period when crypto tried to break above the 180B mark for 35 days before gaining 100% 49 days afterward (red),” Harland added.
– Omkar Godbole
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