Steno Research, an independent macroeconomics, geopolitical, and crypto research house, has predicted that the spot ether ETF, presumed to start trading in early July, will take ETH to ,500. Steno’s latest post on the subject forecasts that Ether ETFs will perform better than leading analysts have predicted, bringing up to billion in inflows this […]
Bitcoin News
Ethereum Price Consolidates While Bitcoin Surges, Can ETH Follow BTC Later?
Ethereum price is consolidating gains above ,400. ETH could start a major increase if there is a clear move above the ,460 resistance.
- Ethereum is consolidating gains below the ,460 resistance zone.
- The price is trading above ,400 and the 100-hourly Simple Moving Average.
- There is a major bullish trend line forming with support at ,435 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if there is a close above the ,460 and ,480 levels.
Ethereum Price Aims Higher
Ethereum price saw a steady increase after it broke the ,350 resistance. ETH climbed above ,400 and tested the ,460 zone. A high was formed near ,463 and the price is now consolidating gains, while Bitcoin extended its increase above the ,000 level.
Ether is trading above the 23.6% Fib retracement level of the recent wave from the ,352 swing low to the ,463 high. There is also a major bullish trend line forming with support at ,435 on the hourly chart of ETH/USD.
Ethereum is now trading above ,400 and the 100-hourly Simple Moving Average. If there is a fresh increase, the price could surge above the ,460 level. On the upside, the first major resistance is near the ,500 level. The next major resistance is near ,550, above which the price might rise and test the ,620 resistance.
Source: ETHUSD on TradingView.com
If the bulls remain in action, they could even push the price above the ,620 resistance. In the stated case, the price could rise toward the ,700 level.
Another Bearish Wave In ETH?
If Ethereum fails to clear the ,460 resistance, it could start a downside correction. Initial support on the downside is near the ,435 level and the trend line.
The next key support could be the ,400 zone or the 50% Fib retracement level of the recent wave from the ,352 swing low to the ,463 high. A clear move below the ,400 support might send the price toward ,375. The main support could be ,350. Any more losses might send the price toward the ,240 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,400
Major Resistance Level – ,460
Treasury Secretary Yellen Insists US Could Default on June 1 — Goldman Sachs Estimates ‘Real Deadline’ Is a Week Later
U.S. Treasury Secretary Janet Yellen has insisted that the U.S. could default on its debt obligations on June 1. “I think that’s a hard deadline,” she stressed. Meanwhile, global investment bank Goldman Sachs has estimated that the “real deadline” for a possible U.S. default is “more like” June 8-9.
Yellen and Goldman Sachs on U.S. Default, Debt Ceiling
U.S. Treasury Secretary Janet Yellen reiterated her concerns about a possible U.S. default on NBC’s “Meet the Press” Sunday. Responding to a question about the June 1 deadline for a possible U.S. default, she said:
I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June and possibly as soon as June 1. And I will continue to update Congress, but I certainly haven’t changed my assessment. So I think that’s a hard deadline.
However, the U.S. government is expecting some tax payments on June 15 which would provide some revenue. When asked about the likelihood the U.S. could get to June 15 “to avoid breaching the debt ceiling,” Yellen said: “There’s always uncertainty about tax receipts and spending. And so it’s hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15th, while being able to pay all of our bills, is quite low.”
Commenting on “extraordinary measures” that President Joe Biden could take to resolve the debt ceiling issue in Congress, Yellen said: “There has been much discussion of the 14th Amendment. And, as President Biden said … it doesn’t seem like something that could be appropriately used in these circumstances, given the legal uncertainty around it, and given the tight timeframe we’re on. So my devout hope is that Congress will raise the debt ceiling.”
Yellen noted:
My assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills go unpaid.
Global investment bank Goldman Sachs, however, predicts that the U.S. could default on its debt obligations approximately one week after June 1. Alec Phillips, Goldman Sachs’ chief political economist, told Bloomberg TV on Friday: “The reality is that Congress has to do this at some point very soon, and they should just go ahead and do it … So waiting for the last minute isn’t necessarily the right move, even though we think that maybe they could go a little bit longer.”
The Goldman Sachs economist shared:
Our guess right now is that the real deadline is probably more like June 8th, 9th, that’s when they’re at sort of greatest risk.
The Congressional Budget Office (CBO) recently said that there is a significant risk of the U.S. defaulting in the first two weeks of June.
Many people have warned that the U.S. defaulting on its debt obligations will have catastrophic consequences, including a global financial crisis. Top executives of 146 major companies in the U.S. have urged Biden and congressional leaders to act swiftly to prevent a U.S. default, warning of “disastrous consequences.” Moreover, some believe that a U.S. default would risk the dollar’s reserve currency status.
Do you think the U.S. will default on its debt obligations in June? Let us know in the comments section below.
Bank of Japan to Launch Digital Yen CBDC Pilot Later This Year
The Bank of Japan is preparing to launch a pilot test for a digital yen, its central bank digital currency (CBDC), later this year. Shinichi Uchida, executive director of the Bank of Japan, explained that the goals of this new pilot are to test the technical feasibility of the currency and to include private businesses in its design process.
Bank of Japan to Continue Digital Yen CBDC Experimentation
The Bank of Japan is advancing in its research for the issuance of a hypothetical Japanese central bank digital currency (CBDC), the digital yen. On Feb. 17, Shinichi Uchida, executive director of the Bank of Japan, announced the bank had decided to launch a new pilot for the digital yen, as a continuation of two phases of proof-of-concept tests.
Uchida said that the new pilot will focus its activities in two directions. The first one will be the fine-tuning of the technical aspects of the currency, in order to test new use cases and integrate the system with other structures.
He declared:
We plan to develop a system for experiments, where a central system, intermediary network systems, intermediary systems, and endpoint devices would be configured in an integrated manner.
The second direction has to do with the inclusion of private institutions in the pilot to provide feedback and help improve the design of the digital yen. To achieve this goal, the Bank of Japan will establish a CBDC Forum, with private entities in the payments area being invited to contribute to the project.
An Internal Pilot
Uchida also explained the way in which the announced pilot tests will be executed. The Bank of Japan will take an incremental approach, proposing narrower objectives first and then expanding the scope of the program. Also, he clarified the new pilot will not include transactions between retailers and consumers, with only simulated transactions being settled during this test.
The launch of this test is no surprise, as Nikkei had reported about it in November. At that time, the outlet informed the tests would have a duration of two years, and would focus on testing the functionality of the system in offline environments.
Even with the launch of this pilot program, the issuance of a digital yen is still not a sure thing. In March last year, Haruhiko Kuroda, governor of the Bank of Japan, stated there were no plans for issuing a CBDC.
What do you think about the new pilot program for the digital yen? Tell us in the comments section below.
Bitcoin in El Salvador – One Year Later
It has been one year since Bitcoin became legal tender in El Salvador. Crypto adoption has not been without issues in El Salvador, but it’s difficult to weed through the different stories about Bitcoin because there are so many competing interests promoting or FUDing Bitcoin. This article will filter through the nonsense and describe how Bitcoin in El Salvador has panned out one year after it became legal tender.
Why El Salvador Made Bitcoin Legal Tender
El Salvador made Bitcoin legal tender ostensibly for a few reasons. The government cited the following reasons:
- A significant portion of El Salvadorans receive remittances from the United States. Remittances from the US actually make up 20% of El Salvador’s GDP. Fees for wiring money to El Salvador are not cheap. Bitcoin transactions are cheap, so the El Salvador government made Bitcoin legal tender to reduce the fees citizens must pay for remittances.
- Approximately 70% of El Salvadorans do not have bank accounts. Transacting in Bitcoin can act as a sort of bank account.
- El Salvador uses the United States Dollar, which is suffering from fairly bad inflation at the moment. El Salvador moved to Bitcoin to hedge itself against inflation of the US Dollar.
The three reasons listed above are all the official reasons that El Salvador gave for making Bitcoin legal tender. There are likely other reasons for El Salvador to make Bitcoin legal tender that they will not say publicly, though.
It’s also important to note that USD is still legal tender in El Salvador. The country still mostly uses USD despite Bitcoin legal tender. Anyway, the next section will discuss the reality of Bitcoin use in El Salvador since the country made it legal tender.
Bitcoin in El Salvador – The Reality
This section will cover point by point the official reasons that El Salvador made Bitcoin legal tender and then describe the reality of the situation. First of all, remittances in El Salvador. Are Salvadorans using Bitcoin for remittances?
No, Salvadorans are not really using Bitcoin for remittances. According to information from worldcoinstats.com only 3.2% of all remittances are done in Bitcoin, which is pretty bad. Of course, no one expected this number to jump to 100% overnight, but it’s an underwhelming use compared to what many in crypto expected.
Next, are Salvadorans using Bitcoin for their daily transactions?
Again, not really. There’s no hard data on this figure, but it’s estimated that approximately 80% of shops in the country do not accept Bitcoin despite it being legal tender in the country. With that in mind, it’s unlikely that Salvadorans are using Bitcoin for most of their transactions.
This came as surprise because the Chivo wallet app (the official Bitcoin lightning network app of El Salvador) had over 4 million downloads when it was released. However, this is because new Chivo wallets received a free deposit. The average salary in El Salvador is per day, so is a few days of work for many Salvadorans. Of course many would download an app for a free when they make so little per day.
Finally, has Bitcoin served as a good hedge against inflation of the United States dollar?
Well, El Salvador bought approximately 0 million worth of Bitcoin over the past year at an average price of ,000. The current price of Bitcoin is about ,000. USD inflation currently stands around 8.2%, so El Salvador has lost more money by holding Bitcoin than it would have if it held USD over the past year.
Of course, Bitcoin is more of a long term thing for El Salvador, so it’s a little silly to declare this a failure after only one year.
What Went Wrong With Bitcoin in El Salvador?
As you can see from the above points, Bitcoin in El Salvador has not been the great success that many people expected. There’s not much reason to fear, though. It has only been one year since El Salvador made Bitcoin legal tender in the country.
The biggest problem with Bitcoin in El Salvador is that El Salvador picked probably the absolute worst time to make Bitcoin legal tender. They basically did it right at the top of the bubble and then proceeded to buy “the dip” anytime the price dropped – the problem was the price kept dropping.
Anyone that went all in on Bitcoin around that time would be down about 50% right now. It happened to plenty of people, but in the case of El Salvador it happened to the entire country. If El Salvador would have invested in Bitcoin a year or two earlier, then the country would be up 500% on its investment and many would declare it incredibly succesful.
This will likely occur if the price of Bitcoin rises again, which its expected to do after the Bitcoin halving. The problem with that the next halving is a few years away in 2024. Can El Salvador stay with Bitcoin for that long? Or will the country abandon the cryptocurrency before the price recovers?
The other problem with Bitcoin in El Salvador is that the government forced people to use it, which goes against a lot of the principles of cryptocurrency. In fact, is it even cryptocurrency at that point?
We would argue that it’s not really cryptocurrency if the government forces you to use it. The government specifically forced people to use the Chivo wallet app, which has a reputation for having a lot of bugs. And that has left a lot of Salvadorans with a bad first impression with Bitcoin because they associate all the bugs with the Chivo app as problems with Bitcoin.
This is still a relatively minor problem, though. The bigger problem was that El Salvador picked the worst time to invest in cryptocurrency, but it’s still worth mentioning the other problem with the current system in El Salvador.
Final Thoughts
To summarize, Bitcoin in El Salvador has not been very successful one year into the country making it legal tender. There is still no need to fear, though. Bitcoin is a long term project for the country, so if El Salvador can stick to their Bitcoin experiment, then they will likely see it become successful.
GameStop Turn To NFTs, Plans To Launch Marketplace Later In The Year
Video game retailer GameStop has entered the non-fungible token (NFT) space. According to the Wall Street Journal, it is forming a division to develop a marketplace for non-fungible tokens and form cryptocurrency partnerships with crypto firms.
GameStop To Build NFT Marketplace
According to the WSJ story, the company has employed more than 20 individuals to oversee the unit, which is developing an online hub for buying, selling, and trading NFTs of virtual videogame artifacts like avatar clothing and weaponry.
GameStop launched its NFT website last year and has been inviting creators to join the platform.
The company is also close to signing deals with two crypto startups to exchange technology and co-invest in the creation of blockchain and NFT-based games, as well as other NFT-related initiatives. According to the report, the store plans to get into similar deals with a dozen or more crypto startups this year and invest millions of dollars in them.
GameStop restructured its leadership team and board of directors last year, appointing activist investor Ryan Cohen as chairman.This has has pushed GameStop to become more tech-focused.
Related article | Only In Crypto: A Croissant Breaks Down How GameStop & NFTs Will Boost Ethereum
GME Price Rise In Response
Last January, GameStop’s stock skyrocketed after Reddit stock traders began buying the shares. The stock began trading at in 2021 and reached a high of 3 a year later. Multiple congressional hearings and federal agency probes were held as a result of the unprecedented volatility.
The stock of GameStop ended at 1 on Thursday, but has already risen to 2 in after-hours trading.
GME trading at 3 post-market following the news. Source: TradingView
The news propelled GME shares substantially higher after hours in what appears to be yet another short squeeze, which will be great news to longs who had seen the stock price fall.
Some of the industry’s largest companies in the videogame business, including Ubisoft Entertainment, Zynga Inc., and Square Enix Holdings Co., have started or announced plans to sell NFTs in recent weeks. However, some industry leaders and players have expressed reservations about the value of NFTs and the motivations of their developers.
In light of the COVID-19 pandemic’s impact on GameStop’s physical storefronts, the WS Journal’s report presented the GameStop NFT strategy as one targeted at increasing the company’s overall financial performance.
Related article | Why was 2021 an important year for NFT?
Featured image from iStockPhoto, Charts from TradingView.com
NewsBTC
Aave To Introduce Permissioned Deployment for Institutions Later In July
Aave declared a kick-off of its new project this month to meet the abruptly growing demand from different institutions. According to their announcement, Aave, one of the leading DeFi money markets, will launch a permission payment platform for investors.
The DeFi protocol is partnering with Fireblocks, a crypto service provider and custodian, to launch the new platform.
TraderNoah, a Twitter user, on June 4, 2021, revealed a screenshot of an email they supposedly got from a Blockworks webinar.
$AAVE Pro coming in July.
For those that didn’t attend the "NExt Steps in Institutional Defi" Zoom with Stani, here’s a recap email I received. pic.twitter.com/ClwlBkXh2r
— Noah Goldberg (@TraderNoah) July 4, 2021
The webinar titled ‘Next Steps in Institutional DeFi’ featuring Stani Kulechov, the CEO and founder of Aave.
Related Reading | Bitcoin Eyes K As Wyckoff Level As Altcoins Prepare To Surge
Also in attendance were Michael Shaulov, Fireblocks co-founder and CEO, and Mike Novogratz, Galaxy Digital CEO.
The email and the conference both confirm plans for the launching of ‘Aave Pro,’ Aave’s institutional product, in July. This move is to provide the solution to the numerous demands from institutions.
What Aave Pro Partnership with Fireblocks Will Facilitate?
Aave Pro launch is meant to support only four digital assets, namely; AAVE, BTC, USDC, and ETH. In its operations, there’ll be segregation of Aave Pro’s pool from other Aave’s deployments.
The platform’s V2 smart contracts get an added whitelisting layer. This addition enables certain institutions, fintech, and corporates to get access to Aave Pro.
The accessibility is regulated by the KYC (Know Your Customer) verification from Fireblocks. Also, Fireblocks will oversee anti-fraud and anti-money laundering for Ethereum-Based protocol.
Related Reading | TA: Ethereum Steadies Near .2K, Why ETH Could Start Fresh Increase
There’s also a future plan of decentralizing governance from an email. Recall that Kulechov first mentioned in May the plan of creating a permission pool for institutions. The lending pool is to inculcate both anti-money laundering restrictions and KYC compliance.
According to the operations of the pool, users will first complete a Know Your Customer verification from the partner, Fireblocks.
Aave is hovering in the green zone after marking a 15% increase on the daily chart | Source: AAVEUSD TradingView.com
The new platform is meant to bring collaborative learning in both decentralized and centralized finance. Currently, the combination of the DeFi token, 3 deployments give a total value locked of about billion.
Twitter Community Responds Back With Mixed Reactions
There are mixed reactions from the screenshot on crypto Twitter. Some people outline the great opportunities for institutions to engage in DeFi using the new platform. Others are quite skeptical about the Fireblocks’ partnership with the DeFi token.
What people have yet to appreciate about Aave and Compound’s institutional products is that having doxxed institutional clients gives them an easy way to move into undercollateralized lending and credit markets.
— Noah Goldberg (@TraderNoah) July 4, 2021
The reason for this latter group is the recent lawsuit against the firm filed by StakeHound, a staking provider. The lawsuit is on for allegedly deleting private keys to a wallet that has about million worth of ETH.
If Fireblocks is the one doing all the KYC, why do they need a separate pool that is supposedly being governed by anon $AAVE governors?
Btw, Fireblocks 🤡 recently lost 72m in ETH and is being sued now. pic.twitter.com/M8o3n7qJdI
— DefiMoon (@DefiMoon) July 5, 2021
Aave Pro is not the first project from Fireblocks. There have been several such projects from Fireblocks created to assist institutional capital in accessing decentralized finance seamlessly.
Their move was to create a bridge for institutional investors to access decentralized finance. In early 2020, Fireblocks had partnered with Compound in launching some services to assist institutional investors.
Related Reading | Litecoin Foundation’s Project Director Makes The Case For LTC’s Network Effect
The project was to eliminate some of the challenges associated with the storage of private keys in browse while using a wallet.
This procedure will not be favorable for an institution that has multiple users as members. Thus, Fireblocks made a bridge by putting governance in operation.
Featured Image From Pixabay - Charts by TradingView
Backlash Following Later Than Expected Rollout For Cardano Smart Contracts
At yesterday’s Cardano 360 event, IOHK CEO Charles Hoskinson gave an update on the long-awaited Alonzo upgrade. Due to stress testing and exchange integration, Hoskinson expects a rollout in mid-August.
IOHK had previously penciled in a date of the end of March 2021 for this to happen. A five-month delay hasn’t gone down well with some sections of the community.
Cardano Smart Contracts Won’t Be Ready This Month
The Goguen phase is the great equalizer in terms of bringing smart contracts to Cardano. It was split into three development stages.
First was Allegra, which enabled token locking; this laid the foundation for smart contracts by bringing metadata functionality to record the specific purpose of tokens. Then there was Mary, which introduced the ability to create user-defined tokens. The final piece is Alonzo, which integrates the extended UTXO model with the Plutus smart contract language.
During Cardano 360, Hoskinson gave a timeline for Alonzo’s completion. He said this process requires integration into the ledger and node code, which is happening now through to April. At the same time, “alpha partners” will be running acceptance criteria and tests.
“What’s occurring right now, all throughout March and all throughout April is that integration into the node to get a CLI. As that integration is happening, partners are being brought in, and these are alpha partners, so they’re very close and deep in court of company.”
Once done, by the end of April or early May, IOHK will be ready to launch the Alonzo testnet. Hoskinson mentioned that large cohorts of programming professionals and Plutus pioneers are ready to stress test the network.
As Plutus was built by an independent team, in parallel with Shelley, Hoskinson warned there could be some “rough edges” in that integration. Hence QA and user acceptance testing are needed to circumvent any problems in that respect.
Expected August Rollout Leads to Backlash
All of the above is scheduled to finish by the end of June. At this point, the final stage involves bringing all of the stakeholders up to speed. Hoskinson gives this a four to six-week time frame, taking us into mid-August for the Alonzo hard fork.
“If that occurs, what we will do is wait four weeks minimum for our partners, the Coinbases, the Binances, Yoroi, all these other people, who have infrastructure that needs to upgrade that needs to upgrade, test, and modernize for Alonzo before we do the Alonzo hard fork.”
The feedback from the Cardano community has been mixed. On the one hand, some have expressed positivity over the thoroughness of work going into Alonzo. But others have slammed the delay.
On that, Hoskinson noted a surge in toxicity and trolling. But he puts this down to a realization that Cardano is on track.
I’ve noticed a massive surge in toxicity, FUD, trolling, and outright slander lately. It must mean Cardano is finally perceived as a threat to the status quo and we are on the right track. Stay focused everyone, the next six months are going to be a rough but rewarding ride
— Charles Hoskinson (@IOHK_Charles) March 26, 2021
Despite the delay to Alonzo, the market did not react badly. Today, ADA is up 8% to .17.
Source: ADAUSD on TradingView.com
Fed’s Surprise Rate Cut Led Bitcoin to Surge, and It Crashed Minutes Later
It has been a turbulent past few weeks for virtually every major market across the globe, with Coronavirus fears sparking an intense selloff that sent the Dow Jones, Gold, and Bitcoin all reeling lower in tandem.
This correlation has shown no signs of slowing down, as the Fed just announced a 50-basis point rate cut that instantly led the US equities market and Bitcoin to surge.
Shortly after this surge, however, these markets surrendered these gains, with Bitcoin plummeting back down to ,700.
Fed Announces Largest Emergency Interest Rate Cut Since 2008
Just minutes ago, the Fed announced that they would be conducting an emergency 50bps rate cut aimed at providing the markets with some much-needed stability.
This interest rate reduction marks the first emergency cut that the Federal Reserve has conducted since the 2008 financial crisis, signaling that they view the economy’s current position as being precarious due to the recent week-long selloff seen across all markets – including Bitcoin.
Heather Long, the Washington Post’s economic correspondent, spoke about the significance of this latest rate cut in a recent tweet, saying:
“BREAKING: Federal Reserve makes an emergency 50bps interest rate cut. It’s the biggest cut since 2008 and the first emergency rate cut since 2008.”
BRAKING: Federal Reserve makes an emergency 50bps interest rate cut.
It's the biggest cut since 2008 and the first emergency rate cut since 2008. #economy #stocks
— Heather Long (@byHeatherLong) March 3, 2020
This instantly led the Dow Jones to surge from 25,800 to highs of nearly 27,100, which is around where the rally lost its steam, with the DJI subsequently retracing back to 26,650.
Bitcoin Moves in Tandem with Dow Jones, Erases Early-Morning Gains
The impacts of the 50bps rate cut were not limited to the traditional markets, as it instantly led Bitcoin and Gold to both surge alongside the Dow Jones and other benchmark indices.
Bitcoin instantly surged from lows of ,720 to highs of ,900, with this intense rally happening at precisely the same time as the surge seen by the DJI.
“Spot where the Fed rate cut was announced,” Hsaka, a prominent cryptocurrency analyst on Twitter, noted while pointing to a chart showing the crypto’s rapid rise.
Spot where the Fed rate cut was announced.$BTC pic.twitter.com/oVe9l2LpWV
— Hsaka (@HsakaTrades) March 3, 2020
In the time following this rally, however, BTC has since erased all of these gains, with the crypto plummeting to lows of ,680 before climbing slightly to its current price of ,720.
One of the only assets that has been able to hold on to the rate cut-driven gains is Gold, which is currently trading up over 3%, with its uptrend showing no signs of slowing down.
Featured image from Shutterstock
NewsBTC
Nearly Two Years Later, A Retail Crypto Fund Experiment Is Down 81%
Back at the tail end of the crypto hype bubble in 2017, it wasn’t uncommon to find posts throughout the cryptocurrency community that demonstrated what a small investment made in Bitcoin at the beginning of the year would have brought savvy investors for riches.
Just as the bubble began to pop, a Reddit user attempted to replicate such comparisons in a new year and sought to track the performance of a ,000 investment spread evenly across the top ten cryptocurrencies at the time. The end result even nearly two years later, has been a loss of 81% on the entire investment.
Down 81%: Crypto Bubble Pop Turns ,000 Investment Into 2
At the start of 2017, Bitcoin hadn’t even broken above ,000, yet it ended the year reaching a price 20 times that. Many other crypto assets followed a similar trajectory, making many braggart investors wealthy that year.
The discussion of wealth generated through even tiny investments in the asset class spread throughout discussion forums around the web, and subreddits focusing on cryptocurrencies suddenly dominated the list of top threads on the popular social content aggregating website Reddit.
Related Reading | Reddit User Wins Lottery, Buys Bitcoin: Here’s What He Could Earn
There, on Reddit, one user who saw many threads during the previous year track their road to riches publicly, decided to create a new thread where he would track the progress of a ,000 investment made at the start of January 2018, across the top ten cryptocurrencies by market cap at that time.
The crypto fund experiment – nearly two full years later, is still down 81% from the initial investment. Sadly, the results of the retail crypto fund are the norm for most investors who bought in just as the bubble was popping.
Bitcoin Saves Portfolio From Added Losses, Nearly Half of Assets Fell Out of Top Ten
Even the actual list of cryptocurrencies invested in demonstrates just how much the emerging crypto market has changed dramatically in just two short years of bear market.
The investor behind the fund notes that a total of 40% of the list of top ten cryptocurrencies are no longer in the top ten, with NEM, Dash, IOTA, and Cardano all falling out of favor for the likes of EOS, Binance Coin, Bitcoin SV, and stablecoin Tether.
Tether’s appearance in the top ten alone is a strong indicator of just how bearish the market turned after the bubble popped, as it’s commonly used as a flight to stability when crypto prices are expected to crash.
“At no point in this experiment has this investment strategy been successful, explained the Redditor, adding that the “initial 2018 Top Ten have under-performed each of the twenty-two months compared to the market overall.”
Related Reading | Crypto SIM Hack: Somber Reminder To Never Invest More Than You Can Afford to Lose
The full ,000 investment is now worth just 2. Four performers on the list are down over 90% even today, and the entire investment would be even worse off it if weren’t for Bitcoin, which the investor remarks is “still miles ahead of the pack.”
The sad state of this crypto fund experiment is a sore reminder for crypto investors to never invest more than they can comfortably afford to lose.
The post Nearly Two Years Later, A Retail Crypto Fund Experiment Is Down 81% appeared first on NewsBTC.