Bitcoin pushed ahead of the pack around midnight UK time leaving casualties behind. DeFi tokens were hit as traders cycle out of the highly valued DeFi tokens and pour into the BTC rally.
Ethereum did not suffer that much of a drop perhaps due to the impending launch of CME Ether Futures. This will happen on February 8.
Ethereum is seemingly ‘going to the moon’ as it reaches another all-time high above US$1,700. There are lots of moving parts to the second biggest cryptocurrency by market capitalization. Sceptics may focus on the challenges that it faces. But hackers and coders love to solve problems. Ethereum was designed to be a currency to fuel an ecosystem of applications and we are still at the very beginning of this journey. Meanwhile, the coming CME Futures launch represents another milestone towards crypto becoming an established asset class.”
– Paolo Ardoino, CTO at Bitfinex
Ardoino’s sentiment is echoed among some Ethereum traders and even crypto hedge fund managers. However, some argue that the launch of Ether Futures may also lead to a drop in Ether price akin to what had happened when CME launched its Bitcoin Futures in 2018.
The largest decentralized exchange by liquidity, UniSwap, has seen its token price fall from a high of US$22.50 to its current US$20 level, representing a 10% hit.
With many tokens and cryptocurrencies currently trading at their respective ATHs, it would seem natural to short the current rally. However, crypto “whales” maybe less willing to do so now having witnessed the retail force which happened to GameStop.
[ Read more: GameStop Has Been Stopped, But Was It Any Surprise? ]
[ Read more: Multi Asset Trading App Robinhood Under Fire for Halting Trading for GameStop ]
