Ethereum, DASH and Monero are the #2, #3 and #4 Cryptocurrencies by market cap behind Bitcoin. They are also in a huge bubble that’s been created the past few weeks. Here are some numbers:
Ethereum: up 178% in 30 days
DASH: up 350% in 30 days
Monero: up 60% in 30 days
When Bitcoin is up the “alt coins” trend down or sideways. When Bitcoin is down, the alt coins trend up. Recent news about the SEC denying the Bitcion ETF, continued contentious debate over a scaling solution for Bitcoin, the Bitcoin Unlimited bug and now Vinny Lingham calling for lower Bitcoin prices have set the alt coin market on fire. Twitter is full of Crypto traders FUDing and FOMOing from coin to coin. If you think trading stocks in they dotcom heyday was crazy try the 24/7 crypto market. Ethereum was up 30% in a 12 hour stretch this week!
This won’t end well for anyone except maybe Bitcoin longs. Bitcoin is antifragile. It’s been through this before. Bitcoin has an ecosystem and most importantly it is used as a store of value and money. The same cannot be said for Ethereum, DASH or Monero.
Very few companies survived massive runs in their market cap during the dotcom bubble. I expect the same of Cryptocurrency. When this alt coin bubble pops, and it will, those bubble profits will make their way back to Bitcoin.
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I own Bitcoin but I am starting to become more and more concerned about the growing possibility of a hard fork in Bitcoin, which would be a bad thing for the price. What do you think?
Similar to a stock split you will be granted coins on both chains only if you hold coins when the fork happens. Sets up an interesting buy or sell dilemma.
Support at $1050. Below that $920. We’ve seen very strong buying below $1100.
As of today, I’m holding my coins and mostly ignoring the FUD on a fork. The alt coins have run because of the fears of a fork and if those fears pass I expect that alt coin money to come racing back into BTC.