In the new analysis of the eToro crypto market carried out by Simon Peters, the current state of Bitcoin and Ether was analyzed compared to the beginning of February. In addition, there is a tour of the possibility of a “counting” by BTC, the update of Ethereum Shanghai and the advances of Visa to include the settlement of transactions in its network through stablecoins.
The second month of the year began and the Bitcoin cryptocurrency suffered a slight decrease in its price for a seven-day range. However, certain key indicators signal that the market is in “contango” in addition to other signals that give the crypto asset positive points.
Bitcoin started this first week of the month trading above USD 23,500 but it suffered a drop and was below USD 22,500 at the beginning of the week before beginning its recovery path, which did not become highly significant since, yesterday morning, the price of the cryptoactive was established at the USD 22,500.
Besides, Bitcoin funding ratewhich is responsible for measuring the future price of Bitcoin against the spot price It is at its highest point since December 2021 although, according to Glassnode, “the price level seems much lowerPeters sentenced.
As mentioned earlier, Bitcoin market conditions are currently similar to a “counting” raw material prices. Well, the futures price is above the spot price of the asset itself.
Reference is made to raw materials because this same behavior is usually seen with oil, copper, among others. Operators often prefer to pay more for the asset in the future than bear transportation costs at the current price.
That this behavior is seen in the Bitcoin market is due to a “short squeeze” and also because the market has raised the average withdrawal price of various investors. Glassnode said there are a bunch of other positive indicators for Bitcoin.Also part of which are neutral forex outflows and the strongest monthly price performance in January for the token since October 2021.
In the case of Ether (ETH)despite the volatility registered during the week, the cryptoactive maintained its linear price for seven days.
At the beginning, the price marked a little below USD 1,530 to later rise and position itself above USD 1,675. Which makes it reach the highest point since November 2022.
“The market pulled back a bit late in the week and the *token* is now hovering around $1,620.” Simon detailed.
Ethereum developers are closer to launching a new Shanghai pre-upgrade test and are in the midst of launching the Shapella fork on the Zheijang testnet.
“The Merger was a huge change in how the Ethereum network works, but some key functionality is still missing,” explained Simon Peters.
The Shanghai update will be the opening of the withdrawal of shares of Etherwhich will open the way for both institutional and retail investors to withdraw their staking tokens whenever they want.
“Currently, staking works like a perpetual bond, in which investors receive a return in exchange for their locked ETH. But the introduction of withdrawals will allow users to make it work much more like an easily accessible account. While the best place for tokens is still online, it will give investors peace of mind knowing that their collateral can be returned at any time.” Simon specified.
Visa studies the way to incorporate the settlement of crypto transactions to its network
“Visa is studying ways to integrate the settlement of crypto transactions into its network, executive Cuy Sheffield said at the StarkWare Sessions 2023 in Tel Aviv.Peters mentioned in eToro’s weekly commentary on the crypto market.
Worldwide, payments are mostly settled through the SWIFT banking network. Inclusively, all fiat currency that is handled at the border must undergo the same process, it is mandatory. The opening of settlement of payments with cryptoactive means a magisterial impact since it would bring opportunities for cross-border payments.
“With the growth of stablecoins and their adoption as a key industry opportunity to broaden crypto asset adoption, the potential for any growth in the network effects of the technology is positive,” Peters said in his comment.
Stablecoins have become a central axis and key exchange for users of the crypto ecosystem with fiduciary money, which opens the possibility that they become a key point for the process of normalization of international payments.
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