To Buy the Dip or Not? That is the Question!
Happy Friday ??
Bitcoin has reached a new ATH at $73,750, along with cryptocurrencies that have provided multifold returns in the last week. Now, since the markets are sideways, a question arises: should you buy more, hold, or sell before everything goes kaput?
Ethereum, too, has been making headlines due to its Dencun Upgrade, which allows you to access rollup features to transact at 1/60th the cost of regular transactions. Yep, you heard it right, blob gas fees are now at 1 Gwei (vs 60 Gwei earlier).
However, crypto prices also saw severe drawdowns this week, as corrections hit border markets.
This week’s newsletter brings you some stark realities of crypto markets that are often neglected under bullish sentiments.
Capturing the Crypto Market Pulse?
Bitcoin has finally reached a new ATH of $73.7k, supported by ETF inflows, the upcoming Bitcoin Halving event, and an overall bullish undertone in the markets.
However, reality soon struck as corrections took over the markets. Since March 14th, Bitcoin prices have declined about 8% as traders and investors booked profits.
Top Gainers of the Week?
1. 0x Protocol ($1.23) + 135%
0x Protocol is a project that allows users to trade ERC-20 tokens without interacting with centralized exchanges.
The protocol gained more than 135% last week due to the successful implementation of Ethereum’s Dencun Upgrade.
2. Gala ($0.065) +45.7%
Gala is a P2E cryptocurrency of the blockchain based Gala Games. The gaming ecosystem has created several free to play blockchain games which also rewards its users.
The crypto has gained from an overall bullishness in gaming cryptocurrencies.
3. Near Protocol ($7.88) +46.5%
Near Protocol is a layer-1 blockchain and is a community-driven blockchain that supports cloud computing. Its high transaction speeds have made it popular among IoT applications based on blockchain.
The reason for its growth is that Near has been achieving adoption from several Web3 projects.
4. Floki ($0.000002658) +50%
A crypto from the Valhalla Metaverse, Floki has been on a spiraling path upwards since the bull run picked pace. Since its last bottom in May 2022, it has grown more than 1100%.
Several users in the crypto community consider it a memecoin that could break out massively given its history.
5. dogwifhat($3.18) +58.5%
Dogwifhat is a Solana meme coin and is among the top gainers in Solana in this bullish market. It has made serious gains in the last couple of months, rising more than 28% in the last week alone.
?Top Losers of the Week:?
1. Bittensor($596) - 18.3%
Bit Tensor is a machine learning framework based on blockchain and uses its crypto TAO to reward users. It aims to create a data market for Artificial Intelligence.
The crypto has seen market correction after it scaled 620% in the last one year.
2. Optimism ($3.80) - 17.2%
A layer-2 blockchain that uses Optimistic Rollups, Optimism has been a forefront gainer of the bull run in overall markets.
This cryptocurrency too has declined by 12.5% in the last one week due to profit booking.
3. BitcoinSV ($91.61) - 15.1%
Bitcoin SV (Satoshi Vision) was created after a hard fork of Bitcoin by Craig Wright in 2018.
The crypto witnessed a sharp fall on Friday, March 15th, 2024, after Craig Wright was found not to be the famous Satoshi Nakamoto. Craig self-proclaimed himself as Satoshi Nakamoto.
4. Ethereum Classic ($32.5) - 16.11%
Ethereum Classic was a hard fork from the Ethereum blockchain after some users disagreed with reversing the blockchain transactions following the hack of Ethereum DAO.
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The fall in the price of the crypto was a result of profit booking after the crypto rallied from $14.7 to $38 within the last 6 months.
5. Helium ($7.34) - 16.78%
Helium is a blockchain network that acts as the mainnet for IoT-based devices. It allows low-powered IoT devices to communicate with each other.
The majority of the fall in its price has been in the last 24 hours and is mostly due to a reversal in its chart patterns.
Market Sentiment
The crypto Fear and Greed Index have cooled down after it reached 88 yesterday from 82 last week. The market corrections soon followed after.
After Bitcoin made the ATH of $73.7k, there was widespread profit booking, causing the sentiments to fall.
Global Market Overview
The Crypto Market Cap has still maintained its size, and the current figures are at $2.62 billion.
Bitcoin dominates 51.5% of the market share, while Ethereum dominates 17.3% at the end of this week. Both of them have lost a small fraction of their market dominance last week.
Market Watch
Ethereum Layer-2 solution whose price gained massively in the last few months due to Ethereum’s Dencun Upgrade now faces a dire situation where its token price could fall by 50%. The unlocked crypto belongs to the team and the investors who could sell it after the cliff unlock.
Amid massive demand for Bitcoin ETFs, the cryptocurrency might cross $100k soon. Another wave of demand arises from HODLers who are bent on sitting on their profits despite having massive unrealized profits.
Amid Telegram’s huge $750 million IPO buzz, TON has surged to a 2-year high. It is also one of the top gainers last week after its price rose by 32%.
Top Crypto News
With the new Ethereum Dencun Upgrade, the cost of L2 transactions would get even lower, which could propel Metaverses to gain their lost market. Metaverses consume a lot of gas as they record each player's action on the blockchain.
Ethereum ETFs might not arrive soon in the markets as there appears to be a lack of communication from the regulators. Analysts who were confident of an Ethereum ETF as soon as May 2024 are now less confident about their arrival anytime soon.
A palm-scanning anti-AI project called the “Humanity Protocol” has arrived in the markets, which challenges the Worldcoin project as a less intrusive alternative. The protocol is based on Polygon, which makes it inherently cheap and resistant to Sybil attacks.
Expert Take
Bitcoin Value Surge Led to Increased Cryptocurrency Sector Attacks
Identity verification leader AU10TIX released its Q4 2024 Global Identity Fraud Report. Among other trends, AU10TIX discovered that Bitcoin’s price surge in Q4 2023 is directly related to a 39% increase in global identity fraud attacks targeting the cryptocurrency sector - The increase in attacks was mainly in North America and APAC, as the EU’s Markets in Crypto Assets (MiCA) regulations seems to have deterred fraudsters.
Top Video of the Week
In this video, we see how El Salvador’s Bitcoin bet has paid off well both for their internal economy as well as for their President Nayib Bukele. With Bukele’s re-election, he is now even more confident on his Bitcoin bet. Bitcoin has been a legal tender in El Salvador since 2021.
That’s a wrap for today!