Triaconta Weekly #165

The following topics will be addressed in this weekly.

  • The big Dip
  • Bundles performance
  • Winners & losers
  • Market overview

The big Dip

Wednesday afternoon it suddenly went completely wrong. A combination of rumors of tougher rules in China, tax day in America and the sharply increased prices in recent weeks caused Bitcoin to dive to $ 30,000 and take the entire market with it. In a short time the market lost 40% of its value and from 3:10 PM Dutch time it went up again like a spear. About two-thirds of the decline has now been made up for. The sharp decline and the rapid recovery indicate a dip and not the start of a declining market. Bitcoin dips this year: January 8-22 -30%, February 21-28 -26%, Mar 14-25 -18%, April 14-25 -28%, May 10-19 big dip -50%. Total Bitcoin result this year is + 39%.

Bundle performance

Despite a so far reasonable recovery of many currencies, the bundles recorded a significant loss this week. To put this special week in perspective, the yield for 2021 to date (YTD) has also been calculated. This is and will be a fantastic year for crypto.

Big 3:
YTD: + 195% | 1 Month: -11.34% | 7D: -24.19% | 24H: -1.16%

Top 30:
YTD + 356% | 1 Month: -19.17% | 7D: -31.99% | 24H: + 0.23%

Penny Stock ::
YTD + 1275% | 1 Month: -28.62% | 7D: -28.11% | 24H: + 1.27%

YTD + 257% | 1 Month: -14.84% | 7D: -33.56% | 24H: + 1.09%

Winners & losers
Polygon (+ 28%) is still positive for this week. Solana (+ 1%) is also coming back well after the dip. Solana was added to the Top 30 in the latest revision and will be listed on Coinbase on May 24, which is always good for the price. The biggest fallers this week are EOS, Bitshares and Qtum with -43%. Most coins have really not recovered from the scare yet, and are therefore well on offer with decreases of 35% to 40% such as Terra, Bitcoin Cash, ICON, Litecoin, Tezos, Binance Coin, The Graph and Chainlink.

Market Overview

According to data from Google Trends, the weekly search volume for search terms related to the topic “cryptocurrency” has reached its highest level yet, both in the US and worldwide.

Justin Sun (founder of Tron) tweeted on Wednesday that he had bought 4145 Bitcoin for an average price of $ 36,868. Michael Saylor of MicroStrategy, a company with a relatively large amount of Bitcoin on its balance sheet, also indicated that he would buy on Wednesday. Elon Musk assured his followers that Tesla had not sold or was going to sell any of their Bitcoin. Nevertheless, Glassnode analysis shows that many large investors who had only recently been in crypto have left. A lot of small private investors with a bit more experience are buying this dip. That is going slowly and it may take a while before we are higher than last week.

Dips of 30-40% occurred five times during 2017’s rise from $ 1000 to $ 20,000 and ended up being only brief interruptions along the way for Bitcoin. Because there is now a lot of investment in leveraged futures, this decline was extra fast and large and that is something that will continue to be part of it.

For futures, you borrow Bitcoin with your other crypto as collateral. Then you buy new crypto with the Bitcoin. This can sometimes be up to 100x more than the value of your collateral. As long as the prices rise, this will be excellent. If the prices suddenly drop a lot, your collateral in crypto is no longer worth enough for the loan. The exchange where you invest will then automatically close your position. Your collateralized crypto is completely sold and used to pay off the loan. You have been liquidated. Last Wednesday, 775,000 traders were liquidated for a total of $ 8 billion.

Red Bull Racing announced a multi-year partnership with Tezos on their website this week. Tezos becomes the team’s official Blockchain partner. As part of the deal, Tezos is building Red Bull’s first-ever NFT experience for fans, with the very first Formula 1 NFT tokens already being issued for Aston Martin and Alfa Romeo. European sports teams such as FC Barca, Manchester City, Paris Sait-Germain and AC Milan have also started offering tokens for fans. They allow owners to be a bit part of the team and get VIP rewards and exclusive promotions.

Gas-powered Bitcoin miner Greenidge in New York will become completely carbon neutral next month. Greenidge is currently using natural gas in its Bitcoin mining. On Friday it announced that it is committed to 100% CO2 neutrality. It hopes to achieve this through CO2 compensation. Exchanges FTX and BitMEX have also decided to pay a small percentage of the fees paid ($ 0.0026 for every $ 1) to organizations that further develop sustainable energy or offset CO2 such as CoolEarth.