The first weekend of December 2021 won’t be forgotten in a hurry. In a freak flash-crash incident, the crypto market lost more than $600 billion within a matter of hours.
The five day price chart for the cumulative crypto market cap. Source: Tradingview
The flash crash saw the price of Bitcoin drop from prices of $58k, recorded on December 3rd, down to $42,874 on December 4th.
Although Ethereum (ETH) was forced as low as $3,930, the world’s second-largest crypto edged Bitcoin out in terms of performance, setting a new three year record in the process.
The 24 hour Ethereum-BTC (ETH/BTC) price chart. Source: Tradingview
The price of Ethereum on the ETH/BTC chart reached as high as 0.08573, its highest point since May 2018 when Bitcoin dropped from $9.7k to $7.4k.
The five year Ethereum-BTC (ETH/BTC) price chart. Source: Tradingview
Ethereum’s Rapid Recovery
In the wake of the flash crash, Ethereum made one of the fastest recoveries of all of the top cryptos. ETH is currently the best performing crypto in the top 50, aside from stablecoins and Terra, which surged to a new ATH.
On December 6th, the price of Ethereum (ETH) rose as high as $4,207 from its low of $3,930. The price of ETH on the ETH/USD chart is now at $0.8377.
The 48 hour price chart of Ethereum (ETH). Source: Tradingview
Crypto Birb, a prominent crypto analyst, believes that Ethereum’s swift rise from the downturn was because “investors are taking ETH as a hedge here.”
On the Flipside
- Despite performing strongly against Bitcoin, Ethereum is still 16% down from its all-time high of $4,859 recorded on November 10th.
Why You Should Care
Ethereum’s rise against the world’s biggest crypto proves that Bitcoin is no longer the only crypto being used as a hedge by investors.