For a majority of the last 48 hours, Bitcoin, the world’s largest cryptocurrency has traded just below the $60,000 price level, with the aforementioned level not too far from the crypto’s ATH. Ordinarily, such steady consolidation would be good news, right? Well, yes. But, everything needs to be put in context and expressed in relative terms.
Take a look down at the cryptos below BTC and you’ll find that the likes of ETH and XRP are surging. Contrary to the prevailing perception that the altcoin market follows Bitcoin, here you have two of the market’s most-prominent alts defying the general market trend to register hikes of their own.
What does this entail? Is the alt season finally here? Perhaps. Perhaps not. What is evident, however, is that both these cryptos have surged on the back of developments that are ecosystem-centric. The purpose of this article is to answer the following question – should anyone be concerned about Bitcoin’s ‘stagnant’ price movement of late?
Yes, stagnant, At least, that’s what a lot of people are calling a consolidatory move on the charts these days. On a certain level, these concerns are justified. After all, Bitcoin is the flagbearer of the crypto-market and its performance is critical to that of the general market. However, it would seem that despite BTC’s unwillingness to sustain a breach of the psychological $60k barrier, there isn’t much to be concerned about.
Consider this – according to Santiment, Bitcoin isn’t in the “super overvalued territory” yet, with its 30d and 365d MVRVs well away from their local tops. In fact, these metrics suggest that there is still a lot of room for growth, with a lot of potential upside in price projected to come in. Historically, local tops in the same have been succeeded by price drops.
Since we are still away from these tops, BTC can be expected to climb some more despite recent consolidation, before correcting again.
Whether the said hike would be enough to breach its ATH, however, that will be difficult to ascertain.
Santiment’s report also looked at the cryptocurrency’s 3-year and 5-year Dormant Circulation, with the same observing that recently, a fair amount of very old coins were moved between addresses. According to the report, “This is a good sign, distribution keeps taking place.”
What’s more, other metrics such as Mean Coin Age seemed to suggest the network-wide accumulation trend is still going smoothly, despite the fact that there had been some degree of distribution back in the month of March.
Finally, the nature of whale behavior is also crucial to understand what to expect going forward. This is true especially since not only have there been cases where whales have dictated price movements, but whale sentiment is a good barometer of where BTC might end up in the near term.
Over the past year, the amount of daily whale transactions worth at least $1M has risen by over 740%, with the daily average climbing from 229 on 1 April 2020 to 1,930 on 1 April 2021.
In fact, despite brief hiccups and the fact that BTC hasn’t reciprocated or shared the bullish sentiment of alts such as ETH and XRP, its whale holders are refusing to panic, with the brief drop-off in supply looking to steady itself at the time of writing.
That being said, it wouldn’t be an ordinary crypto-market without a few red flags rearing their heads. While the aforementioned metrics did suggest good times ahead for BTC, a few others seem to be erring on the side of caution.
Consider Bitcoin’s funding rate, for instance. A few days ago, the same was recorded to be at +0.10%, very close to the 0.12% levels that were seen a few weeks ago. The latter coincided with the cryptocurrency recording its local top in March, with the same followed by a significant price drop.
This means that there isn’t a lot of room to move for the Funding Rate, with higher levels only playing into the probability of a short-term top being formed and a correction soon after.
There’s also the matter of sentiment. Whale sentiment is one thing, but what about retail sentiment? Well, Bitcoin’s weighted social sentiment at the moment is close to its one-year low. Here, it’s worth noting, however, that historically, there have been cases where similar findings have fueled the movement of Bitcoin in the opposite direction.
🤔 #Bitcoin is on the cusp of crossing a $60,000 market value once again. And whether it does so or not in the next few days, #cryptotwitter is showing some major skepticism at this range. Historically, this level of doubt only propel $BTC further upward. https://t.co/J04Y8Et3n1 pic.twitter.com/sr4J9lj5FI
— Santiment (@santimentfeed) April 2, 2021
Ergo, uncertainty is the best projection one can give about Bitcoin’s short-term fortunes. While a longer case of consolidation is likely to be the case, price action in either direction on the charts cannot be ruled out.
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Cryptocurrency Market Cap Surpassed That of Apple
With bitcoin, ether, and more alternative coins reaching for the stars with new records in the past 24 hours, the cumulative market capitalization of all crypto assets surged to new record levels above $2.2 trillion. Interestingly, this means that the total crypto market cap exceeded that of the world’s most valuable company – Apple.
Crypto Market Cap Surpasses Apple’s
After weeks of suffering beneath the $60,000 price line, bitcoin finally emerged victorious today. In a long-anticipated moment from the community, the primary cryptocurrency initiated an impressive leg up that resulted in breaking the previous ATH record of $61,800.
Furthermore, BTC continued higher and marked its latest record of over $63,700. The first-ever cryptocurrency pulled the rest of the market with it, and ether followed with a new all-time high of its own at $2,300.
XRP has been on a roll as well, with another 34% surge and a 3-year record at $1.85. The situation with most altcoins is also quite bullish with impressive increases.
Naturally, this led to a substantial boost for the cumulative market capitalization of all crypto assets. According to data from CoinGecko, the metric added about $150 billion in a day and reached a new all-time high at over $2.260 trillion. Just for reference, this is more than a 10x increase in a year as the crypto market cap was down below $200 billion at the same time 2020.
With its latest record, the market capitalization of cryptocurrencies breached that of Apple. Data from AssetDash shows that the world’s most valuable company has a market cap of $2.230 billion as of writing these lines.
In other words, the crypto market has become more valuable than the giant US multinational technology company.
Are We Still Early?
One of the most discussed topics within the community is whether or not “we are still early.” The general answer so far has been – yes. Or, as Tyler Winklevoss said recently – we are still in the first inning.
But surpassing Apple sounds like a big deal, which could question that narrative. However, it could also have another side to the story.
Although exceeding Apple’s market cap is indeed an impressive milestone, it’s worth noting that this is just one company. Yes, the largest as it seems, but just one.
The top five companies by that metric, which also include Microsoft, Saudi Aramco, Amazon, and Google, have a total market cap of over $9.3 trillion. Furthermore, the estimated market cap of gold is over $11 trillion.
So if we can somehow compare the cryptocurrency market to just these companies or just gold, then the narrative is still that we are early.
Ethereum Is Undervalued and Can Go Another 500% From Here: Analysis
Ether could double-down on its recent bull run by surging 500% more which will take it well within a five-digit price territory, suggested a former hedge fund manager and popular crypto analyst, Teeka Tiwari. He further claimed that Ethereum could surpass bitcoin as the most valuable crypto due to the high levels of utilization.
ETH to $13,000?
The Ethereum blockchain is arguably the most used network in the cryptocurrency space. From several stablecoins running on top of it to being the underlying technology behind two of the most popular manias – NFTs and DeFi.
Although this enhanced utilization comes with drawbacks of its own, such as delayed transactions and high fees, it has positively impacted the price of the native cryptocurrency. ETH is more than 200% up since the start of the year as it painted yet another all-time high of over $2,3000 earlier today.
Despite this massive increase, the popular trader Teeka Tiwari still sees the asset as “wildly undervalued” and predicted more bullish developments right around the corner. He believes ETH’s value will expand by 500% from its current position by the end of 2020 alone.
With ETH trading above $2,200 as of writing these lines, such a sizeable surge will take it to roughly $13,000 per coin. The asset’s market capitalization will skyrocket to over $1.5 trillion.
Moreover, Tiwari asserted that ether will eventually surpass bitcoin’s market cap, which is situated at just shy of $1.2 trillion now.
“In my view, two trends – DeFi and decentralized apps (called dApps) – will make Ethereum the most valuable software platform in history. Because when you eliminate the need for a third party or middleman, you can dramatically lower costs.” – he added.
Scaramucci and Cuban Support?
Tiwari outlined that he’s not the only believer in the future of Ethereum. He referred to recent positive comments from SkyrBridge Capital’s CEO – Anthony Scaramucci, and the billionaire investor and owner of the Dallas Mavericks – Mark Cuban.
The former White House Director of Communications recently highlighted Ethereum’s fundamentals and predicted that the native digital asset will become a “sticky” cryptocurrency and “a store of value.”
On the other hand, Cuban referred to ETH as a “true currency” that he started accumulating four years ago and currently comprises about 30% of his cryptocurrency investment portfolio.
ShapeShift Launches Decentralized Trading Through THORChain, RUNE at ATH
In an announcement on April 13, the Switzerland-based non-custodial crypto company stated that it was now fully integrated with THORChain, enabling users to trade native Bitcoin with Litecoin and Ethereum for the first time.
The move is a big deal because it is the first time a decentralized exchange has enabled crypto asset swaps across different blockchains without the need for bridging technology or custodian controlled wrapped tokens.
Launch all the things! 🚀 🚀 🚀 pic.twitter.com/lgkUxl2QJ6
— ShapeShift 🦊 (@ShapeShift_io) April 13, 2021
THORchain Crossing the Chains
THORchain launched its long-awaited MCCN, ‘multi-chain chaos net’ platform on Tuesday, April 13 amid a great deal of hype from the crypto community including ShapeShift CEO Erik Voorhees.
Less than a day before the launch, Voorhees stated that it would be a huge deal for crypto.
“Native cross-chain decentralized exchange. Never been done before. Arguably the biggest event in crypto this week, though it may not be obvious for a year or two.”
THORchain uses its own native token RUNE as collateral and an intermediary, so those wanting to trade BTC for ETH, for example, will have the trade go via RUNE yet the end-user will not notice.
The revolutionary platform has been in development for three years and yesterday’s launch could bring big improvements to the rapidly evolving DEX space.
Voorhees continued to extol its virtues:
“We saw the power of this technology and wanted to bring it to our users immediately. This is a continuation of our commitment to offer users an easy, self-custody platform for their decentralized trading needs.”
ShapeShift DEX users, including those making trades via the new THORChain integration, can also earn FOX Tokens with every trade which enables eligibility for other rewards on the platform.
FOX Pumps 45%, RUNE Hits ATH
ShapeShift’s FOX token exploded on the news, pumping 45% to reach an intraday high of $1.30. The exchange-based token has made 180% over the past month and hit an all-time high of $1.60 on April 6.
THORchain’s RUNE token has also been on fire, surging 19% on the day to hit an all-time high of $14.60 at the time of writing according to Coingecko.
RUNE has doubled in price over the past fortnight and pumped a monumental 1,150% since the beginning of the year.
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