Keeping up with this cryptocurrency rally? The strong start to 2020 and the potential for a crypto roaring 20’s continues to look good as Alt-coins have picked up in a huge way.
Although Bitcoin is still rallying, making it to $10,300 this morning, there have been strong pickups in Ethereum, XRP, BCH is still moving higher and BSV is also trying to get up. Bitcoin is up 64% low to high.
Tezos is going parabolic, up 200% on the year and 20 projects have a market cap > $1 billion USD with almost 70 > $100 million.
Daily turnover in the space is about 65% of total market cap, where a low figure is about 30%. Bitcoin dominance is falling at the moment, where almost all high quality projects have a long way to go, being currently below 1% of Bitcoins value. One interesting tweet of late was Charles Hoskinson talking about Cardano’s long-term interest in stablecoins, alluding to doing something with MakerDai.
- Bitcoin is up 64% low to high.
- Alt-coins have picked up (Bitcoin dominance down 6%)
- Volumes are significant
- Sense of big things happening in the space
Although things began to look very serious since China’s president Xi began talking about orienting China around Blockchain and the Chinese ambitions with their own currency became clear, perhaps the market is beginning to reflect that. With the immense amount of cash in the economy and no yields anywhere, it looks like 2020 could continue strongly on 2019 as a year of institutional adoption.
In support of that, the US Federal Reserve Chairman Jerome Powell gave testimony to the U.S. House Financial Services Committee Tuesday and discussed the need for privacy in digital currencies in the context of China’s digital Yuan project (find our article on that here).
The Chinese digital currency project has forced the world to pay close attention to the space, especially its acceleration midway through 2019. Now that the most powerful man in global finance is speaking about ledgers it is clear that the technology has fully permeated to the top.
China has the attention of Japan, who are regularly speaking about issuing their own Central Bank Digital Currency (CBDC). The head of the banking and finance systems research commission at Japan’s Liberal Democratic Party said yesterday that the country should create a digital yen in 2-3 years and in the last week, Japanese lawmakers requested that digital currencies be placed on the G7 agenda this year.
Meanwhile, China is said to have completed the top-layer design and joint testing of the digital yuan.
Daily Bitcoin / USD Chart
The bullish scenario is likely to respect the trend-channel that has emerged in Bitcoin. The obvious resistance level is the high of the move on President Xi. In the context of the halvening, of institutional inflows, of a reversal of the down-trend and general sentiment, the asset is looking good long term. With punters waiting for a pullback a paradigm shift move higher may not be out of the question.
However if the sentiment is overdone on a move that has already happened (Bitcoin is up 64% low to high) calling for higher prices could be incorrect in the short to medium term. On the bearish side, a squeeze through the blue support lines (the bottom of the old range) is not impossible as a trade. Overall, we stay bullish for now where new bids could be considered at the bottom of the trend channel.
Daily BCH / USD Chart
Daily ETH / USD Chart
Daily XRP / USD Chart
Tezos is up 200% low to high, Cardano 100% Stellar 100% and Algorand is up around 50% low to high.
Come on down, guys
Tether has struggled to get past anywhere past $1…