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Crypto Today - Retracement phase in full flow after yesterday's impressive rally

  • All the major cryptocurrencies are pulling back after a strong session on Wednesday.

Cryptocurrencies are pulling away from their best levels after a strong rally on Wednesday. Bitcoin rose 13.39% yesterday hitting a high of 8,988.00 and now has pulled back to around 8,600 in this session. The high on Thursday was a massive 9478.66 and it seemed like the rally was going to continue but the chart now looks like it has a massive spike with a rejection. This could turn into a hammer candle but we would need to wait and see how the price reacts into the close. 

Bitcoin Reversal
  • Link may overtake Ethereum for the second place.

Co-founder of Framework Venture Mike Anderson believes that the price of LINK token may increase by 700% in May and push Ethereum from the second place in the global cryptocurrency rating.  LINK is a native token behind the Chainlink project, focused on creating a blockchain-based cross-platform solution for secure connection of smart contracts with the external data sources., such as data channels, APIs, etc. The project was launched in 2017, now its Ethereum-based token sits on the 13th place in the global cryptocurrency rating with the current market value of $1.3 billion.

  • Ethereum 2.0's Proof of stake model is set to be put to the test.

Speaking on the POV Crypto podcast, Vitalik Buterin, Co-Founder of Ethereum stated the impact of the transition to Proof of Stake on the network and the ecosystem, and why such a move is well-suited for Ethereum and its issuance model. He told the podcast host

“One of the reasons why we’re doing a proof of stake is because we want to greatly reduce the issuance. So in the specs for ETH 2.0 I think we have put out a calculation that the theoretical maximum issuance would be something like 2 million a year if literally everyone participates.”

Analysts have noted that the reason BTC has become so well-positioned to excel at being the number 1 crypto is the pre-programmed hard cap on Bitcoin issuance i.e. of 21 million BTC. Buterin then pointed out that in the coming decade, income for stakeholders like miners, even with the Ethereum network, will not be likely to come from newly-issued assets, but rather from transaction fees.

Author

Rajan Dhall, MSTA

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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