Things just keep getting uglier and uglier for cryptocurrency investors with Bitcoin retesting 40,934 and down -8.81% on the session. We had anticipated that investors would get more jittery, as there’s likely less speculative hype associated with cryptocurrencies and a recent round of tweet exchanges involving Elon Musk and whether or not Tesla would actually dump its Bitcoin holdings.
Of course, it initially seemed like he would, but then Elon Musk later clarifies that Tesla hasn’t dumped any Bitcoin. However, as the news headlines went about Bitcoin, it does seem like if he had “actually” dumped Bitcoin at $60,000 he would be the nostradamus of investment managers that’s developed an art for rent seeking like a Warren Buffett as opposed to engineering the future of Space Travel or Battery Technologies.
Tesla Motors does no longer accept Bitcoin because of “energy efficiency” concerns
Figure 1. Tesla Motors Official Stance on Accepting Bitcoin
Source: Elon Musk Twitter
I.E., this guy Elon Musk really has obnoxious Twitter trigger fingers, but beyond just that, we think sentiment has just dried up in cryptocurrency in general.
Bitcoin seems to be trending lower watch out
Figure 2. Bitcoin Chart
Source: CoinMarketCap
As of last week, BTC broke below the major $48K level and seems to be cruising lower on the long-term chart. So, we think it’s time to start hedging your bets, perhaps consider bagging profits if you have any in BTC, because the pullback could continue based on just the momentum of selling, and the type of musings other big Bitcoin investors might have, or the usual slurry of negative headline blitz from other major publishers on Bitcoin as well.
Ethereum starting to look uglier on the long-term charts
Figure 3. Ethereum Price Chart
Source: CoinMarketCap
So, just keep in mind, Ethereum is also pulling back pretty heavily and is currently -8% and $3,119 as of the time of writing. It seems like Ethereum is also pulling back, but just a little slower.
However, the alts (alternative coins that just aren’t as stable as BTC or ETH) are having a really rough day on the session, which we had anticipated would be the case in an article we published titled: Coinbase Will Crash When Bitcoin and Ethereum Holders Cash In.
Binance Coin also performing pretty poorly
Figure 4. Binance Coin Price Chart YTD
Source: CoinMarketCap
While Binance coin had an impressive run, it seems like its re-testing $450, which we haven’t seen since April of 2020. So, either this is a pretty major pullback for all the coins, or we’re due for a pretty significant correction with some of the bigger investors giving miss signals or miscues as to how committed they are to holding crypto assets.
Even the bigger alts are dropping with BNB -13% over the last 24 hours and -33% over the last 7-days. This compares Bitcoin -9% over the last 24 hours and -29.68% over the last 7-days and Ethereum -8.37% and -28%.
Meaning that BNB coin as the biggest alt coin is starting to trend lower in percentage performance when compared to the main stable coins, i.e. BTC and ETH.
DogeCoin Price Drop Slowing Down but Still Far From the Top
Figure 5. Dogecoin Price Chart YTD
Source: CoinMarketCap
Simply tough luck for DogeCoin (DOGE) holders. At one point, the coin reached an $91B market cap as of its peak on May 8th, 2021. However, the coin has kind of flopped, and its now valued at $55.6B or roughly -38.9% from its peak. It seems to have hovered within a -7% trading range for the past 7 sessions so the volatility has died off a bit, but for the most part, Alts continue to take a beating particularly the poor shiba inu this week.
The bigger alt coins seem to be performing poorer when compared to BTC and ETH however there seems to be pockets of inflated value among other alt coins, and we think more alts will get carried out in stretchers as flight to safety probably puts Bitcoin in a collision course with $30k-$40K price range whereas Ethereum adjusts to $2,500-$3,000, which will send the broad basket of alts even lower in comparison to the “safe haven” coins.
As in, if you’re still in alts, and the value seems propped up a bit, now would be a good time to hit the sidelines, or go for stable coins like BTC and ETH. Even though those two coins are dropping, they tend to drop slower than the rest of the cryptocurrency market or versus alts in general.
Disclosure: Cho Research was not compensated by any cryptocurrency foundation associated in the article titled“Bitcoin, Ethereum, Binance, and DogeCoin Price Analysis ” Though Cho Research does use the research dollars it
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