Is Bitcoin levelling out here? At least two go-to analysts think it’s a chance. Meanwhile Cathie Wood and her tech-loving Ark Invest just bought another US$3 million worth of the flagging Coinbase stock.
At the time of writing, Bitcoin has bounced back up above US$29k from a much scarier position earlier in the day, staying thereabouts for the past six hours or so.
Dutch trader Michaël van de Poppe is pointing to a decent Wall Street opening on the S&P 500 (+0.25%) and Nasdaq 100 (+0.8%), to which crypto has been heavily correlated for quite some time now…
Indices should be bouncing, through which we could be getting some more relief on the #Crypto markets here.
If we break through $29.6K, we’ll probably see a slight short squeeze towards $32K regions for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) May 12, 2022
That said, the US dollar (DXY) is also presently moving up (0.5%), so let’s not get too hopeful about that just yet.
Another well known trader/chart watcher, Crypto Ed has also predicted the day’s play pretty perfectly so far, having called for a rest at about $26-27k and a bounce from there…
#BTC update from earlier today:
Aaaand we’re bouncing.
Break 30k and we’ll be heading for $33k next week. pic.twitter.com/EUI7hqBBkv
— Ed_NL (@Crypto_Ed_NL) May 12, 2022
Only time will tell if it proves to be sustainable support… (Strokes beard sagely. You can take that incredible insight to the bank.)
Buying the COIN dip: Cathie Wood… and did
oh my, like the GM kiss of death, Cathie Wood buys another 550,000 Coinbase….
— Jim Cramer (@jimcramer) May 12, 2022
Jim Cramer dissing Cathie Wood seems pot:kettle?
— Denise K Shull (@DeniseKShull) May 12, 2022
Following the report, COIN plummeted from US$73 on Tuesday to the low $50s on Wednesday, having been sitting above US$130 only a week prior.
Maybe Wood took heed of Coinbase CEO’s “fire sale prices” sales pitch yesterday…
“Markets are irrational in the short term but not over the long term. They sometimes offer fire sale prices on the greatest companies in the world.” – @fredwilson
— Brian Armstrong – barmstrong.eth (@brian_armstrong) May 11, 2022
Thank you @freshjiva. Stocks sold off after the tech/telecom bubble because the “dream” would not become reality for 20-25 years. Genomic sequencing, adaptive robotics, energy storage, AI, and blockchain technology are realities, their stocks seemingly in deep value territory. https://t.co/RyhWF8hLLI
— Cathie Wood (@CathieDWood) May 12, 2022
Top 10 overview
With the overall crypto market cap at roughly US$1.29 trillion, down a gut-churning 10.5% since this time yesterday, here’s the current state of play among top 10 tokens – according to CoinGecko.
This table is only a snapshot, of course, and doesn’t tell the day’s full story. Things were actually looking quite a bit worse than this earlier, with Bitcoin (BTC) down around US$26k and then just about “kissing” its “realised price” lower than that.
Ethereum (ETH) has pulled back quite a bit today in comparison to the other major blue chip, Bitcoin. In fact, the ETH/BTC trading pair is down about 7% at the time of writing, according to the Binance exchange.
Although ETH has managed to pull back about US$2,000 from its daily low today, the leading smart-contract platform is now down about 59% from its all-time high of US$4,878 six months ago.
Still, ETH fans know “the Merge” is coming (er, eventually). And that’s the transition of Ethereum from its proof of work blockchain to proof of stake – an event that many believe will be a positive catalyst for further Ethereum network growth and general market excitement.
The 4th shadow fork of the Ethereum mainnet was a success!
The Merge is coming 🐼
— sassal.eth 🦇🔊🐼 (@sassal0x) May 12, 2022
Meanwhile, there has been some FUD (fear, uncertainty and doubt) floating about today about the Tether (USDT) stablecoin briefly de-pegging from its US dollar position. It was apparently identified as a short occurrence on the Bitfinex exchange.
Fear is naturally high surrounding stablecoins at the moment, given Terra’s UST and LUNA fiasco that’s pretty much tanked the market this week.
Quite a few crypto commentators we’re seeing, though, believe the USDT wobble is nothing – nothing new, nothing to worry about.
Centralised stablecoins such as USDT, USDC and BUSD are fiat-backed, unlike decentralised, “algorithmic” versions such as UST, which is collateralised by the LUNA token in a volatility-absorbing burn/mint system. A system that’s… not working out too well presently, to put it extremely mildly.
Yeah, that and they actually have currency as a reserve, just like USDC. Tether (USDT) is a blockchain-based cryptocurrency whose tokens in circulation are backed by an equivalent amount of U.S. dollars, making it a stablecoin with a price pegged to USD $1.00.
— Reno Mac Dre (@RenoMacDre) May 11, 2022
Some bottom signals are starting to hit:
1. funds getting blown up
2. forced selling of alts and 95% crashes
3. USDT irrational panic
Feels like capitulation all morning. Macro can keep rugging so who knows though
— Larry Cermak (@lawmaster) May 12, 2022
Uppers and downers: 11–100
Sweeping a market-cap range of about US$10 billion to about US$542 million in the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time.
• ApeCoin (APE), (market cap: US$2.4 billion) 41%
• FTX Token (FTT), (market cap: US$4.15 billion) 9%
• Bitcoin Cash (BCH), (market cap: US$4.25 billion) 7%
• Celo (CELO), (market cap: US$750 million) 6%
• Helium (HNT), (market cap: US$971 million) 6%
• Terra (LUNA), (mc: US$613 million) -99%
• TerraUSD (UST), (mc: US$4.1b) -48% ($0.34)
• Osmosis (OSMO), (mc: US$625 million) -21%
• eCash (XEC), (mc: US$736m) -20%
• The Graph (GRT), (mc: US$1b) -19%
Did you want a market flush-out? Do Kwon’s Terra has it sorted. The LUNA token is now trading for $0.018. About one month ago, it was changing safer hands at US$119. UST, meanwhile, is still a broken US dollar peg – $0.34.
Are you sure? Idk. Seems like a bullish dump.
— Kevin Svenson (@KevinSvenson_) May 12, 2022
Still, some are spotting an extremely high-risk, opportunistic play. Good luck to them, I guess…
— Alex Becker 🍊🏆🥇 (@ZssBecker) May 12, 2022
Uppers and downers: lower caps
Moving below the crypto unicorns (in some cases well below), here’s just a selection catching our eye…
• Liquity (LQTY), (market cap: US$113 million) +68%
• SafeMoon (SFM), (mc: US$282m) +46%
• Reef Finance (REEF), (mc: US$89m) +16%
• Radio Caca (RACA), (mc: US$178m) +13%
• Olympus (OHM), (mc: US$285m) +12%
• Tomb (TOMB), (mc: US$22m) -77%
• Anchor Protocol (ANC), (mc: US$43m) -56%
• Gains Network (GNS), (mc: US$21m) -49%
• Victoria VR (VR), (mc: US$23m) -48%
• Cult DAO (CULT), (mc: US$39m) -40%
Around the blocks
— John Wick (@ZeroHedge_) May 12, 2022
This is not a Lehman moment. Trust me—I was there.
— Christopher Perkins 🔥CoinFund (@perkinscr97) May 12, 2022
As a LUNAtic with a LUNA tattoo who invested millions into Terra, Mike Novogratz has been eerily quiet through the de-pegging https://t.co/R9zQABHivd
— Zack Guzmán (@zGuz) May 11, 2022
This is how we stole nfts back in the day pic.twitter.com/Szun8JkoeM
— JamesElevens (@James_Elevens) May 11, 2022
Digital sound money continues to do what it was designed to do.
— Pomp 🌪 (@APompliano) May 12, 2022
This news is republished from another source. You can check the original article here.