• Dogecoin (DOGE, Tech/Adoption Grade “C+”) is up 170% today and currently trades at 35 cents.
• Ethereum (ETH, Tech/Adoption Grade “A-”) has pulled back slightly after surpassing the $2,500 milestone.
• Altseason remains in full force, with investors hunting outsized returns in smaller projects.
Dogecoin has climbed the market capitalization rankings to No. 5, with a market cap of more than $47 billion. Volume has notably skyrocketed to $41.6 billion, trailing only Bitcoin’s (BTC, Tech/Adoption Grade “A-”) $52.4 billion in volume.
Investors’ favorite memecoin continues to ascend to almost unthinkable levels despite an uncapped supply and murky use-case. Still, hype can be an extremely powerful force, and it could send Dogecoin’s price even higher.
Meanwhile, Robinhood is facing more problems with its cryptocurrency services as investors are unable to sell their holdings. DOGE holders are having trouble selling their coins, and Robinhood does not give its buyers custody to send to another exchange.
Here’s DOGE’s price in U.S. Dollars via Bittrex:
Ethereum currently trades around $2,400 after briefly trading above the significant $2,500 milestone. Next up is $3,000, which would be another critical psychological level. In this bull market thus far, Ethereum is about 70% higher than its previous all-time high set in early 2018.
Meanwhile, Bitcoin is roughly 215% above its 2017 high. By these standards, it looks like ETH still has a long growth runway.
The second-largest cryptocurrency by market cap still trades significantly higher than its 21-day moving average, which shows that for now, this is simply a healthy dip caused by slight volatility and profit-taking.
Here’s ETH’s price in U.S. Dollars via Coinbase:
Index Roundup
It was another fantastic week for crypto, as almost the entire market moved higher. Bitcoin slightly lagged behind the broader market, but that’s expected during altseason due to investor outflows into altcoins.
Bitcoin still managed to set a new all-time high near $65,000, which sends a positive signal that it’s still highly demanded.
Most cryptocurrencies enjoyed a steady uptrend with little volatility during the seven-day trading week that ended Thursday.
Volatility is inevitable in this emerging market, and investors shouldn’t be surprised to see significant pullbacks because they are healthy in this space.
The Weiss 50 Crypto Index (W50) grew 20.09% this week, as the market saw significant gains from most cryptocurrencies.
The Weiss 50 Ex-BTC Index (W50X) increased 32.30%, highlighting how Bitcoin couldn’t quite manage to keep up with the other cryptocurrencies.
Breaking down this week’s performance by market capitalization, we see that the largest and smallest cryptocurrencies performed in line with each other, while the mid-caps outperformed.
The Weiss Large-Cap Crypto Index (WLC) rose 20.16% in a relatively steady uptrend.
The mid-caps were the biggest winners this week, as the Weiss Mid-Cap Crypto Index (WMC) soared 30.78%.
Small-cap cryptocurrencies had a strong week despite encountering more volatility. The Weiss Small-Cap Crypto Index (WSC) gained 22.18%.
After another positive week for crypto, its long-term prospects look better than ever. Bitcoin and Ethereum notably held their own as they set new milestones, and altseason is progressing as expected.
While it’s important to monitor Bitcoin’s health relative to the broader market, an incoming wave of institutional adoption and accredited investor access from wealth managers should maintain strong demand.
Notable News, Notes and Tweets
• Pomp tweets out bullish data from long-term holders, pointing to a continued rally.
• Bitcoin options traders confidently bet on call options with an $80,000 strike price.
• Morgan Stanley (NYSE: MS) private wealth clients gain access to crypto exposure.
What’s Next
While the market has cooled off a bit — aside from Dogecoin — today’s price action is a healthy breather. All eyes appear to be on Dogecoin, as investors monitor a $1.3-billion wallet making huge trades.
In the wake of Robinhood’s newest outage, investors are again seeing the importance of proper storage and the applications of decentralized finance. Counterparty risk is very real, and Robinhood’s problems are the latest example of why investors must take charge of their own security.
An abundance of recent bullish crypto developments, including Coinbase Global Inc.’s (Nasdaq: COIN) direct listing, Morgan Stanley offering its clients access to crypto, and companies adding Bitcoin to their balance sheets, bodes well for Bitcoin’s price action.
As altseason progresses, we’ll continue tracking the important developments of both the established and emerging names. This bull run’s excitement is just beginning.
Best,
Sam
