Bitcoin faced a drop to $62,000 during Wednesday’s Asian and European sessions, joining the broader decline in the cryptocurrency market as tokens surrendered some of their recent gains. At present, the value of Bitcoin (BTC) stands at $62,046.00, showing a slight 0.5% decrease in the past hour and a 2.7% decline since yesterday. However, BTC’s current value is still 8.0% higher than it was a week ago.
The global crypto market cap currently sits at $2.4 trillion, experiencing a 3.16% decrease in the past 24 hours but an impressive 102.43% increase compared to a year ago. Bitcoin’s market capitalization is at $1.22 trillion, indicating a Bitcoin dominance of 50.86%. Meanwhile, Stablecoins hold a market cap of $161 billion, accounting for 6.68% of the overall crypto market cap.
Bitcoin has stabilized above $62,000 as the weekend approaches. Since surpassing the significant $60,000 mark on May 3, Bitcoin prices have been trading within a narrow range. Other cryptocurrencies have also seen declines, with Solana dropping 6.5% to $146 and Ether experiencing a decline of approximately 3.63% and currently trading around $3,000.
BTC and ETH have shown notable differences in their performances throughout this cycle. Glassnode’s findings suggest a noticeable trend of weaker capital rotation compared to previous cycles and all-time high breakthroughs. Prior to Bitcoin reaching its peak on March 14, Glassnode observed a significant increase in speculative activity. The most recent on-chain weekly report shows a significant increase in capital accumulation among BTC holders in the short term, with approximately $240 billion worth of coins being moved within the last six months.
In contrast, Ethereum has not achieved the same level of success, as it has yet to surpass its all-time high from 2021. Bitcoin’s Short-Term Holder (STH) Realized Cap is approaching the level seen during the peak of the previous bull run, while Ethereum’s STH-Realized Cap has only experienced a minimal increase, suggesting a relatively unimpressive influx of fresh capital. This lack of new capital inflows may be due to ETH’s underperformance compared to BTC, potentially influenced by the increased attention and accessibility provided by spot Bitcoin ETFs.
The market eagerly awaits the SEC’s decision on the approval of a suite of Ethereum ETFs, which is expected to be announced by the end of May.
Despite lagging behind BTC in terms of performance, Glassnode’s analysis indicates that the overall upward trend in the cryptocurrency market remains exceptionally strong, with relatively minor corrections so far. The current value of Ethereum (ETH) is $3,000.09, representing a slight 0.6% decrease compared to an hour ago and a 2.3% decline since yesterday. However, ETH has seen a 3.3% increase in value over the past week.
Glassnode notes that capital flows and rotation between BTC and ETH show that Bitcoin has received the majority of inflows, likely driven in part by US spot ETFs. Short-Term Holders and speculation activity appear to be concentrated within Bitcoin, with limited spill-over into Ethereum thus far.
