Ethereum has been leading price movements in the digital currency space for some time, enjoying the highest trading volumes (usually) as well as probably the biggest community and number of users.
But the currency is now seemingly leading the price movements of traditional stocks too. In particular, Advanced Micro Devices (AMD), which makes highly sought after GPUs for ethereum mining, so much so they were sent out of stock while their price skyrockets.
That increased demand nearly doubled AMD’s stock price from May to June, but as ethereum turned downwards, AMD seemingly did too.
AMD has been exceptionally volatile recently, attracting the highest trading volume of any stock yesterday as it briefly rose 1.4%, but then turned downwards, falling as much as 6%, mimicking ethereum’s moves as the currency opened higher yesterday, but then went on to fall below $200.
Ethereum’s downtrend further continued today, falling below $190 at the time of writing, with its price more than halved since its brief all-time high of $420.
The latest downwards move might be related to Tezos ending their ICO, which raised more than 360,000 eth, with traders potentially worried the highly concentrated supply might become available to the market.
Another source of uncertainty may be bitcoin’s fast approaching August the 1st deadline when the currency might split into a bigger blocks and smaller blocks version.
That has sent bitcoin’s price to nearly $2,200, down more than $100 since yesterday, but in certain scenarios ethereum could benefit by being a safe heaven of sorts during bitcoin’s troubles.
Which means no one quite knows the outcome, so investors may be moving to fiat until it all plays out, sending nearly all digital currencies into red.
It should all become much clearer next week as the new bitcoin client launches. While the Tezos ICO might mark an end to Mega ICOs that raised nearly a billion dollars in the past 30 days.
But, if the recent market price movements in ethereum and more widely are any indication, it seems that for now the summer craze continues.