A look back into if and how bulls fooled bears over the past month
This month is coming to an end. Thus far, the total cryptoassets' market cap rose from a low of £175 ($245) billion on April's 1st, to a high of £315 ($435) billion over the past few hours. For many, 80% gains seem too good to be true - so let's take a closer look.
By the first day of the month, we were seeing bitcoin come closer to £4.3k ($6k), since the major February dip. Ether too, which acts as a proxy for alternative cryptoassets cycles, was at a very low support level. As reported earlier, we were starting to see some key alts gaining strength. That was the first sign after the failed March breakout, which may have been indicative of a bull market.
The problem was whether or not bitcoin - which acts as a leading indicator for the entire cryptoasset market - would be able to successfully breakout of the downtrend it had initiated on December 17th, or not. Remember, CNBC tried to confirm this several days before it was clear that the bears were no longer in charge.
In conclusion, some predicted that what happened this April could've been the bull run of the year. However, they seem to forget that bitcoin has been through several crashes before and that the technology is more mature than ever. In fact, it looks like it's "finally on the right side of the Gartner hype cycle". Yet, as the frenzy decreases, will the next cycle - be it bearish or bullish - be more boring?
Looking at the last 30 days, it's clear that EOS has stolen the show as the top performer on the block. It is now the top 5th cryptoasset by market cap; the smart contract platform for decentralised applications was trading below £4.30 ($6) until April 11th. Suddenly, it jumped 50% in two days. If the epic two week run was to be repeated, "it would surpass ether's value"!
As shared previously, the rising march was likely due to a multitude of factors, with the upcoming launch of its mainnet in June being the strongest catalyst. Here are a few thoughts we've collated: Is it hype or do investors really believe in the pipeline? Are speculators accumulating the tokens now to realise their gains once the mainnet is announced? Lastly, is EOS misleading their investors? Or is their no-fee model a better user-interface than the transference fees for decentralisation?
Impossible to tell, but some say that this was the "top for most coins before the next bear trend" and that this "mini alt season could be coming to a close sooner than one might expect". Even the more optimistic traders are urging people to take profits after experiencing this parabolic growth. Some say that 'what goes up, comes down,' hopefully not as hard as bitcoin did last December.
▪ The Crypto Invest Summit starts today in Los Angeles. In addition to Tim Draper, the popular VC, and Ran Neu-Ner, the popular 'Crypto Trader' TV host, there will be great panels on 'blockchain for social good', 'beyond the ICO hype', 'women in blockchain', 'security tokens' and 'the human brain and blockchain'. Follow here.
▪ The World Digital Assets Summit starts tomorrow in Singapore. Follow the event online for insights from David Ari Paul - CIO of BlockTower Capital, Changpeng Zhao - CEO of Binance, or Ryan Zurrer - Venture Partner at Polychain Capital.
▪ France has cut its income tax rate for cryptoasset gains - from 45% to 19% - applicable to trading only, not mining. However, a 'generalised social contribution' puts the final bill close to 40%. On the bright side, Macron, the President of France, has a hardware wallet!
▪ The Federal Reserve Bank of St. Louis is churning out some good blockchain analysis. Learn more about the latest one - "three ways Bitcoin is like regular currency".
▪ The US' 2nd Amendment was created by the Founding Fathers as a tool to decentralise power. Then rifles were invented and that vision was perverted. What about Bitcoin? Are ASIC chips undermining Satoshi's dream of decentralisation? Must read thread here!
▪ Boston Blockchain Week took place last week - and we likely didn't make it. No problem, check out this reading list and be on the same page as those who had the chance to go.