This week on Planet Bitcoin - 27 May 2016
Friday 27 May 2016
TL;DR Boom! So it gets interesting…
Well, it happened. The dynamics we’ve been pointing towards the last few weeks seemed to have come together, and the market has reacted accordingly.
First up, bitcoin. Bitcoin has been trading between $440 and $470 for some weeks now, with $470 proving a long-term ceiling. Last week, after the brief drop below the $440 level, it was clear that something was on the cards. This week, the market smashed through the $470 mark, decisively breaking out of that corridor. Even if it drops back in, it’s clear that we’re not in Kansas any more. The times, they are a-changing.
What of Ethereum, which blew a spectacular bubble as investors rushed to buy it and throw money at The DAO - one of the coolest and most exciting, but also riskiest and most speculative projects of the times? That, too, topped out. The problem was that when the ICO neared its end, big holders of ETH would take profits and others would aim to front-run the crash, since demand would dry up and the market would be overbought. And so it came to pass: ETH topped out at just about 0.034, pulled back to 0.03, made a brief rally back up and then crashed back down to around 0.024. It’s currently volatile, but has lost almost a third of its value since the top. The fall in ETH coincides with the rise in BTC, and it’s reasonable to say they’re linked. There are good reasons to sell ETH at the moment, and good reasons to buy BTC. The Halving is just a few weeks away, and traders may well be stocking up in anticipation of big rises as supply dries up.
LISK launches, WAVES benefits
The other big event in the crypto space was the launch of LISK, a smart contracts platform based on Crypti. LISK collected a massive $5.5 million in BTC at ICO, and hopes have been high. Despite a few wallet issues on its launch, speculators were not disappointed. Its price went three-fold right out of the gate, and climbed to 0.01255 BTC at one point, almost 9 times its ICO value. As ever, it’s volatile right now, but a lot of traders have booked a lot of profits (and, correspondingly, many others will have lost out). Many of those will be holding for the Halving. Another beneficiary of LISK’s successful launch has been WAVES, a 2.0 platform that is in the final days of its ICO. A flood of new money came into WAVES as LISK rose, speculators clearly hoping to multiply the gains of one ICO with those of another. At the time of writing, WAVES has collected 12,500 BTC, only 2,000 less than LISK managed, with five days to go.
All in all, the mood has very definitely changed from even a couple of months back. We’re approaching something like crypto fever. The next couple of months will be very, very interesting.
comments powered by Disqus