The past week from 10th June to 17th June was the most turbulent week for the virtual currencies bitcoin and ether. Both the currencies rushed together hitting the high bars for their value in the digital currency market. The two virtual currencies bitcoin and ether combined together which has drawn the instant attention of the entire market analyst to them and their relationship of the bitcoin and ether getting all the limelight.
The rise in the value of bitcoin and ether has shown both positive and negative traits to one another sides. The sudden hike in the currencies observed by the weekend on 17th June 2016 at 5:30 IST. The correlation between the two currencies was positive during the period but the closer inspection stated that the correlation between the bitcoin and ether will not be leading to any conclusion.
In this kind of circumstances diverge can be noticed at the time, when both the currencies (bitcoin and either) departs and move to the different direction, that indicated some analysts to characterize them as opponents. Sometimes these sort of fluctuation noticed in the market indicates while highlighting the currency in different perspective such as ether being a flexible and bitcoin as tough.
But, the recent correlation of two different currencies in a positive way has grabbed the entire highlight from the market and the attention of observers. The two major reasons that helps bitcoin market to grow and come up with a strong virtual currency is the economic uncertainty in the China and the upcoming halving on the bitcoin network.
The bitcoin price rise by the 33% in seven days, opening at $576.54 on 10th June 2016 and closed at $767.45 on 16th June 2016. The keen demonstration held between moderate trading quantities, while the market associates traded at 12.8m BTC in the week ending 5:00 p. m. IST on 17th June 2016.
Whereas the ether enjoying a great weekend by closing at the figure of 42.6% rise in its value. Poloniex data exhibits. The rise with the higher value took place in between extremely inconsistent trade action, and the regular trading amount extended from as minute as $11.3m on 10th June to as substantial as $64.4m on 14th June 2016.
Unexpected Growth Variation in Bitcoin and Ether
According to the BPI data, the two virtual currencies (bitcoin and ether) manifest vast variation throughout the past week from 10th to 17th June 2016. The bitcoin value started rising and touching the sky at 4:00 a.m. IST on 11th June. The currency shows the hike of 25% to 719.85 at 8:15 p.m. IST on 13th June.
From the sudden rise in currency (bitcoin) it fell more than 8% to $661.60 at 8:15 p.m. IST. The value of the currency quickly recouped, as bitcoin price rose once again and closing at the price of $767.45 on 16th June.
On the other hand, Ether recorded more fluctuation as per the report showed by Poloniex figure. The value of the currency increases suddenly crossing the figure by more than 30% of its opening price $14.38 to $18.94 at 4:50 p.m. on 14th June. The currency fell around 20% to $15.18 on 14th June, taking a sudden increase in its value of $21.10 at 7:15 p.m. on 16th June.
As the weekend on 17th June, the digital currency (ether) decrease slight in its value opening at $20.51 and gradually the value of the ether coming down slowly.
Unpredictability in the Currency ahead
The digital currency (bitcoin and ether) correlating together and the attention was drawn towards the currency have the certain reasons such as the halving and the economic deflation in China.
The halving of rewards on the bitcoin network, especially, has been inciting market specialists to allow their 2 cents on the long run of the worth of tokens on the network. Rik Willard, founder and decision maker of Agentic LLC, has forecast that bitcoin costs can fancy a “pop” following the halving because it can scale back the number of recent bitcoins generated daily.
According to Rik Willard, “The halving should push more commercial blockchain applications which should encourage the price”.
There are several who sees this fluctuation in the currencies and the halving as the negative aspects but there are few who believe just opposite regarding the matter taking it in an optimistic way.
As per the Tim Enneking, chairman of cryptocurrency investment manager EAM said that he believes “bitcoin prices will experience some softness after the halving”. The Tim Enneking indicated that bitcoin has “more than doubled” once it absolutely was “hovering below $400,” however he also prognosticated that this increase in the value of the virtual currency will not be climbing upward for much time and will drop.
Moving further on conclusion Enneking said that he “would be very wary of making major long bets going forward”.
However, whether or not ether is going to be laid low with this will be detected in future and likely its effect to bitcoin’s halving can be another vital information in knowing however these markets square measure correlate.