Today was all about the violent crash of the price of bitcoin (BTC) and the rest of the crypto market. In a flash, the price of the largest cryptocurrency fell by double digits and even briefly dropped below $41,000. Ethereum (ETH) however, managed to hold its own amid widespread panic in the crypto markets.
ETH / BTC
The price of ether has not fallen nearly as far as the bitcoin price. Where bitcoin collapsed with a crash of at least 25% in just a few hours, ether held up a lot better. Ethereum’s price fell just 15%.
At the time of writing, the price of ether is a mere 5% down from yesterday. It is clear that the damage to the second largest cryptocurrency is not that bad.
This is also reflected in the ETH/BTC pairing. Here today a new level was even reached that has not been seen for three years. The exchange rate of ethereum versus bitcoin rose at least 11% during the crash! Each ETH token is now worth 0.084 BTC.
Ether als hedge
It is obvious that ether managed to hold its own a lot better than the king of the cryptocurrencies. According to analysts, this also shows that investors are increasingly using ether as hedge use against bitcoin.
That is, investors are trying to protect themselves against a possible fall in bitcoin price by investing in ethereum.
Ethereum has long been an increasingly popular choice for many people attractive investment. Among other things, due to the long-awaited ETH 2.0 update that should be launched sometime in the first half of next year and the already implemented ‘ether burning’ process, ethereum’s fundamentals are better than ever right now.
It is therefore not entirely surprising that ethereum manages to keep its head above water during a pretty severe market crash. The future will show how ethereum’s recovery will compare to bitcoin’s recovery.
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