The world of cryptocurrency never experiences a dull moment, and the great experiment marches forward. Over the past 24 hours, Bitcoin's price has declined slightly but remains relatively stable, maintaining above the $400 mark for several weeks. Meanwhile, another cryptocurrency called Ethereum has captured attention, surging to over $15 per ETH and briefly achieving a market capitalization exceeding $1 billion. However, the price has since dropped sharply, with the market cap sitting above $800 million and each ETH trading above $10 at press time.
Bitcoin Price Stability Persists
Throughout the week, Bitcoin has held above the $400 zone with trading volume appearing flat. On Bitstamp's order books, support from buy orders continues at this level, though charts show sluggish movement. This bearish positioning could trigger another downward wave below $400 toward $385.
Several developments occurred in the Bitcoin ecosystem, but none significant enough to drive a price rally. Coinbase added stop orders to its exchange, and all members of USAA, a financial service provider, can now use Coinbase with their existing accounts. 21inc made headlines with proof-of-concept releases like Ping21. Merchant adoption progressed as Japanese company DMM began accepting Bitcoin for services through Coincheck, enabling 19,000 Japanese customers to use the digital currency.
Bitpay announced integrations with precious metals dealer JM Bullion, allowing Bitcoin payments for silver and gold purchases, and a strategic partnership with blockchain software provider Bloq to offer enterprise-grade support for Bitcore users. Microsoft corrected a website error that mistakenly suggested Bitcoin was being removed from its payment processor.
Ethereum's Meteoric Rise and Sharp Correction
On March 13, the turing-complete cryptocurrency Ethereum experienced a massive price surge, reaching over $15 per ETH and achieving a $1 billion market capitalization—a milestone that placed it among unicorn operations. The preceding weeks were filled with positive news: extensive development activity and legacy institutions announcing tests of the Ethereum platform. However, the very next day, the price plummeted, losing the billion-dollar valuation. Hours later, the release of Ethereum's second major version, Homestead, helped the price recover temporarily.
Homestead introduced several backward-incompatible protocol changes, requiring a hard fork when the Ethereum blockchain reaches block 1,150,000. The upgrade provides developers with the ability to conduct further network upgrades, expanding upon the frontier beta release that enabled decentralized apps and smart contracts.
Following the Homestead announcement, ETH prices remained relatively stable above 0.03 BTC until March 16, when resistance set in. A downward spiral followed, dropping to 0.02 BTC on March 18. At press time, the price had nudged up to 0.025 BTC (above $10 per ETH). Despite the correction, trading volume remains high, and exchanges like Bitfinex and Coincheck have added ETH support.
The Cryptocurrency Experiment Continues
Bitcoin has weathered the winter months and emerged resilient, still leading as the foremost cryptocurrency. The ongoing block size debate has not damaged the network as severely as some anticipated. Meanwhile, Ethereum garners significant attention as summer approaches, with investors questioning whether the recent price surge was overdone and due for a correction. Regardless, both Bitcoin and Ethereum will remain under intense scrutiny in the coming months.
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