Worry not, total crypto market cap is still above £285 ($400) billion
New crypto investors waking up today will likely feel uneasy due to yesterday night's dip.Around 03:40 BST, bitcoin's continued rise showed signs of short-term exhaustion, once it failed to break upwards of £7k ($9.7k). Thus, its price fell abruptly, but only by 5% and recovered after a couple of hours. Comparatively, even one of the most bullish Twitter traders considers the likelihood another serious drop.
However, as long as the leader of the pack is able to sustain itself above £6.6k ($9.2k), the ongoing bullish trend remains strong. The current resistance - the level which in the past has seen more selling than buying activity - has blocked the bulls' path three times thus far, since the bottom in February. Moreover, Tom Lee, Fundstrat's co-founder, believes that was really the bottom.
For now, bitcoin has bounced in a convincing manner and is still 1% over the last day. However, it seems the dramatic overnight sell-off induced some panic to the alt party. The top 100 alternative cryptoassets are still down 5%, so look for ether's recovery as a proxy for other alts. The key thing to understand is that it's always more important to decide when to sell than when to buy.
If bitcoin chills today, continuing its sideways movement, it's likely that alts will swiftly recover from the overnight dip. If bitcoin goes parabolic, you know what will happen to the rest of the market. Similar to when all alternative cryptoassets were up over the past weeks, almost all will feel a gravitational pull.
In the past all these new projects were an orchestrated choir performing ether's tune, whereas, now some are increasingly optimistic about EOS. Now, the narrative stating that the new blockchain project can become the next Ethereum killer, especially anticipating the launch of their main network in June, is getting stronger every day.
Multicoin Capital, one of the most renowned VC firms in the industry published a comprehensive analysis of the token and a short summary of their rationale here. Naturally, they seem bullish. Yet they may be perceived as biased since they bought into the project themselves. Therefore, we definitely recommend looking for any potential problems with their decentralisation claim and any overarching criticisms of the project such as the fact that it already has a market cap of £8.6 ($12) billion without a product or a network.
MyEtherWallet is a popular interface with the Ethereum network. You've likely heard of yesterday's phishing attempt through a hijacked DNS servers. Did you know this issue was first flagged in January? Be safe, use MEW or MyCrypto offline only and with a hardware wallet!
Another worthwhile talk from MIT's Business of Blockchain conference, which we covered yesterday, was by Silvio Micali. This MIT Professor, who won the 2012 Turing award, presented his latest Proof-of-Stake based blockchain: Algorand. Learn more about the project and PoS here.
PayPal's founding CEO, Bill Harris, published an article on Recode titled 'Bitcoin is the greatest scam in history'. We can only assume that this 'scam' is eating the lunch of the company he headed until 2000 alongside several other investments he made at his VC fund. Fortunately, even Forbes published a nice rebuttal.
MIT Technology Review shared a piece titled 'Let's destroy Bitcoin'. Their latest edition that taps into the intersection of blockchain's 'hope and hype', analyses three ways in which the original cryptoasset can be 'brought down, co-opted, or made irrelevant'. The last reference being 'Bitcoin is losing its leadership to alts' - was the topic of our 'The Year Ahead' special report - published last January.
Morgen Peck, also the author of the previous MIT article, wrote about nine women who are changing the crypto game. Check out the full piece on Glamour titled 'Cryptocurrency Is Not Just a Boys' Club', and follow 'The Future Collective' - another excellent series of interviews on women who are leading the crypto industry made by Meltem Demirors, one of Morgen's interviewees.