Cryptocurrencies were mostly lower on Friday aside from a few standouts such as Terra’s LUNA token, which was up about 9% over the past 24 hours.
BTC, the world’s largest cryptocurrency by market capitalization, is up about 2% over the past week compared to a 7% gain in ether and a 13% gain in Solana’s SOL token over the same period.
“In our view, the speed with which global liquidity contracts is the most important factor for cryptocurrency performance in the weeks ahead and possibly even into early 2022,” Coinbase wrote in a newsletter to institutional clients on Friday.
Ether, the world’s second-largest cryptocurrency by market capitalization, continues to struggle below its all-time price high of $4,865.
On a relative basis, ether is poised to outperform bitcoin if a breakout above 0.08 in the ETH/BTC ratio is confirmed next week.
“This breakout is essential because it represents a resistance line going back to the 2017 top when one ETH was 0.15 BTC.
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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.
Tracy Wang is a senior reporter at CoinDesk.
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