Another week has passed since our last article, and so much has happened that you do not know what to grab and where to run.
First, let's talk about the fact that All-Time High (ATH) updated many cryptocurrencies, including the leaders of the Bitcoin and Ethereum race. For a moment it may seem that this is the limit of the possible, and we are at the absolute maximum, but this is not so.
We owe the growth of the cryptocurrency market not to the hamsters passing by, but to serious uncles with large funds and capital, who are more actively interested in the new area of investment.
Of course, the hamsters also contributed to this, but their main influx will appear exactly in 2021, when from every yard it will be heard how much the crypto market has grown and how many millions can be earned.
We'll talk about the consequences of greedy hamsters later, but now let's look at interesting events that stimulate the excitement around the crypto market.
The main event is the listing of Coinbase shares on the Nasdaq, which is scheduled for April 14, at 13:30 UTC.
This isn't just another listing for the Nasdaq, it's a big opportunity for the entire crypto industry.
In simple words, although qualified market participants are now taking an active part in the life of the crypto market, it is still difficult for ordinary houseperson to build ways to invest in crypto. At this moment, shares of one of the largest crypto exchanges appear, which is understandable and accessible to many users. Investing and showing interest in the crypto market will take place through the Coinbase stock, but in the end, the entire crypto industry as a whole will benefit from this, precisely due to the growth of interest.
Bloomberg journalist Jon Erlichman has done a pretty interesting analysis, comparing stock market returns to investing in Bitcoin and Ethereum.
The task was straightforward, to invest $1,000 in an asset five years ago.
Ethereum: $273,716
Bitcoin: $148,194
Shopify: $41,662
AMD's: $28,639
Etsy: $26,388
Nvidia: $17,071
Tesla: $14,975
PayPal: $7,101
Amazon: $5,530
Netflix: $5,050
Apple: $4,799
Microsoft: $4,670
Salesforce: $3,055
Google: $3,016
Facebook: $2,803
Based on the analysis, an investment of $1,000 in Ethereum would generate $273,716 in revenue, which is about 55 times more than buying Netflix or Apple stock.
Now imagine that these statistics are seen by crypto hamsters who do not want to understand the details and only want to earn the same amount as quickly as possible.
As a result, we have an influx of new blood into the market, which pulls cryptocurrencies upward, updating the ATH.
What is happening in the market at the moment?
Bitcoin and Ethereum break through absolute highs, where traders are no longer afraid of stunning numbers, on the contrary, they are wondering why they stood still for so long.
The fact of further market growth is undeniable, and with a probability of 80% it will still surprise us at least x2, but with the influx of greedy hamster blood into the market, a rather serious correction is not ruled out.
Thus, moving along an upward trajectory, do not forget to take profits so that at the moment of correction you have the opportunity to regroup trade transactions and, possibly, buy cryptocurrency with a fairly good discount relative to the current price.
As for our expectations for bitcoin growth over the quarter, the $100,000 per 1BTC benchmark is still relevant among traders.
Ethereum has a chance to rise to the $3,000 mark in a period of 2 to 4 weeks. It is worth considering that the rate of change in the price of ETH was several times less than that of BTC, there is a power reserve.
Bitcoin Longs vs Shorts:
Longs (95.94%): $1,626,360,258
Shorts (4.06%): $68,798,940
General background of the crypto market
Analyzing the total market capitalization of the crypto industry, we see that since our last article, the volume of the cryptocurrency market has grown by $476 billion, which resulted not just by breaking the psychological mark of $2 trillion but flying much higher.
The Total Market is currently $2.236 trillion.
To thoroughly understand the scale of the growth of the crypto industry, it is worth remembering that at the beginning of the year the Total Market was approximately $800 billion, and exactly a year ago the total volume was only $195 billion.
The dominant position in the market, as before, is kept by Bitcoin 53.7% of the Total Market, where in terms of numbers it is $1,200,340,654,634.
An interesting fact is that the first cryptocurrency reached a $1 trillion market capitalization twice as fast as Amazon and three times as fast as Apple.
Pay attention to the index of emotions (aka fear and greed) of the crypto market, which at the time of the current ATH update is not at the FOMO* (Lost Profit Syndrome*) level, this is a very good signal that the market is not overheated yet.
Indicator analysis
Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments unanimously signal to buy Bitcoin, this is understandable, the market is at an absolute maximum.