Bitcoin crosses $0.5T
For the first time ever Bitcoin’s market cap has crossed half a trillion dollars.
The price of one BTC is now $28.3k, up 14% in the last 24 hours.
The ETH/BTC ratio is around 0.023 and Bitcoin market dominance is 70%. Some in the Ethereum community haven’t taken the show-stealing performance well, but overall the atmosphere has been positive.
While BTC now seems to be in full price discovery mode, I would urge caution to those thinking about opening a position here. BTC could pull back drastically or money could suddenly spill out into the wider cryptocurrency ecosystem. Despite all the best TA in the world, nobody can tell you what will happen next.
What I will say is that historically when the BTC atmosphere starts to turn euphoric, a reversal is usually imminent. Whether that manifests as a dollar pull back or an “alt season” is anyone’s guess.
Things are of course different this market cycle. The macro-economic picture has changed, particularly around the dollar. While the rally seems to have been primarily driven by new to the scene institutional buyers the fact still remains that 30% draw downs are a common pattern, even in the strongest BTC bull markets. Whether it happens now or at $50k BTC, we can be sure it’s coming.
Conclusion
To anyone who has greater ETH exposure and is feeling left out, don’t forget that ETH is still the better performing asset this year.
Personally I’d consider myself an ‘ETH permabull’ and with eth2 scalability, potentially deflationary issuance with EIP1559 and exponential growth of ETH locked as collateral in DeFi, that isn’t about to change.
Like many I do also have concerns about Bitcoin’s security model moving forwards with the 21M hardcap. Having said that, BTC’s recent incredible performance is undeniable.
Holding both just might be the best way to go, allowing you to avoid any feelings of fomo. Emotions can lead to making an irrational trade, e.g. moving into BTC at the worst possible moment.
As always, nothing in Decentralise is financial advice.
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