The ripples created by the cryptocurrency market crash which saw $1.1 trillion eviscerate from the global market cap in a matter of days continued to reverberate on Wednesday, as a majority of coins experienced notable rebounds.
Optimism on #Bitcoin plunged to one of its lowest levels in 5 years yesterday.— SentimenTrader (@sentimentrader) May 20, 2021
Less than a day later, it has already surpassed its average *3 month* return.
That's one crazy market, man. pic.twitter.com/73JXXta1CB
While bitcoin has been one of the world’s best performing assets over the past 10 years, the cryptocurrency has had its fair share of volatility and price corrections. Using data from CoinMarketCap, this graphic looks at bitcoin’s historical price corrections from all-time highs.
And once again, after yesterday's crypto carnage, Tom Brady (and others) are apparently buying the dip...
SMH...I’ve seen better from you PFT. Over here we just buy the dip! https://t.co/1iJq0JTUUh— Tom Brady (@TomBrady) May 19, 2021
The FUD-full naysayers were quick to gloat about the death of bitcoin (for the 414th time),
But, Bitcoin is now up over 40% from yesterday's spike lows, trading back above $42k this morning...
Ethereum is up a stunning 55% from yesterday's lows, surging back up to $3,000...
Ethereum is outperforming on the rebound, as we noted yesterday, institutional investors are increasingly realizing its 'smartness' relative to 'dumb' digital gold in bitcoin.
Michael Antonelli, a market strategist for Baird based out of Milwaukee, explained to me why ETH, specifically, has really caught his attention:
I think of Ethereum as this wide-open space that people are thinking about ways to build on. There's this group of developers laying sewer lines and electricity and water, trying to entice a vibrant community to be built on top of it. These developers have challenges ahead of them but they're working hard to solve them.
As a “normie” in the traditional finance world, I’m trying to remain intellectually open to the crypto space. There are parts of it I’m willing to outright ignore, such as random tokens and coins being created with goofy names. But there are also parts of the crypto world I’m doing my best to educate myself on so I don’t miss what might be a game-changing technology. Bitcoin, irrespective of its price, makes sense to me as a digital payment system. It might not handle the same volume of transactions Visa or Mastercard do but I get the underlying story of a decentralized payment system.
What has really intrigued me lately is Ethereum, a decentralized network that companies are building apps on. ING, Ubisoft, TD Ameritrade, these are real-life companies testing the waters of building something that is supported by a growing number of developers. What I really care about (more than the price of these coins or tokens) is where are the smart people going to create things? What platforms are they choosing to build something on? Ethereum is emerging as one of the primary destinations for that, so I’m paying increased attention there. Let me emphasize that I’m not exploring Ethereum as a technology because the price of it is going up, I want to know where forward-thinking people are building things because that’s where real value might be found. A payment app will always be a payment app, but a framework to build on might be a skyscraper.
The dip-buyers appear to have recognized the 'extreme' fear nature in markets yesterday almost perfectly echoed those of March 2020...
"People consider this as a 'buy the dip' moment, and many consider this as 'the last chance to buy bitcoin cheap'," said Ruud Feltkamp, chief executive at crypto trading bot Cryptohopper.
"The next few months will show if the bull market will continue or if it's the start of the end of its run."
And altcoins are flying too, with Cardano (ADA) up over 70% and Dogecoin (DOGE) up 55%, helped by more malarkey from Musk...
How much is that Doge in the window? pic.twitter.com/bxTkWOr50V— Elon Musk (@elonmusk) May 20, 2021
Despite the crash, some experts are convinced that the market will bounce back. Yesterday, Cointelegraph organized a live stream to analyze and understand the market’s situation with Charlie Burton and Michaël van de Poppe as guests. The question “Was today’s market movement the end of the bull cycle?” received a solid “no” from both guests.