Kraken: Bitcoin market share falls amid DeFi boom

Against the backdrop of rising activity in the decentralized finance sector, the leading cryptocurrency is losing market share. This is according to Kraken’s monthly report.

Kraken’s Bitcoin Volatility Report by ForkLog on Scribd

The Ethereum dominance index accelerated in the first half of 2020.

Analysts note that even if Bitcoin continues to cede market share to altcoins, a reversal of capital rotation is inevitable.

As of August 31, 63% of mined bitcoins had not moved from wallets for more than a year. In the past, such dynamics signaled the start of a bullish trend in the market, Kraken notes.

However, given the first cryptocurrency’s low volatility in September, a price rise should not be expected before the fourth quarter of 2020, the analysts concluded.

The correlation between gold and Bitcoin prices in August reached a new high of 0.97, later dropping to 0.25.

A high correlation was also observed with the S&P 500 index, but its values later turned negative.

Earlier in August, the pace of issuing “Bitcoin on Ethereum” outpaced the issuance of the first cryptocurrency amid the DeFi boom.

At that time, Kraken’s analysts predicted that Bitcoin’s price would rise by 50-200% in the coming months.

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