There is no greater Bitcoin (BTC) maximalist than Anthony Pompliano — “Pomp” to his million-plus followers on Twitter (NYSE: TWTR).
Bitcoin maximalists believe Bitcoin “is the only digital asset that will be needed in the future.”
We agree that Bitcoin is, and is likely to remain, the King of Cryptos. But there’s a select batch of up-and-coming cryptos that promise to deliver Bitcoin-sized results.
Which ones … and how do you trade them? Dr. Martin Weiss plans to answer those questions and more today at 2 p.m. Eastern.
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Here’s another reason to bet on crypto …
Facebook (NYSE: FB) and Instagram as well as its WhatsApp, Messenger and Oculus VR suffered widespread and lengthy outages on Monday. These outages seem to underscore the rationality of Pomp’s passion.
Facebook and Instagram are pillars of what’s known as Web 2.0, the successor to the original content-consumption model of internet use. The current iteration is about content creation.
Facebook is down.
— Pomp 🌪 (@APompliano) October 4, 2021
Bitcoin is never down.
Here’s Richard Lawler of The Verge with initial details on Monday’s Web 2.0 outages:
Just as Facebook’s Antigone Davis was live on CNBC defending the company over a whistleblower’s accusations and its handling of research data suggesting Instagram is harmful to teens, the company’s entire network of services suddenly went offline.
On Twitter, Facebook communications exec Andy Stone says, ‘We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience.’
A peek at Downdetector (or your Twitter feed) reveals the problems are widespread. While it’s unclear exactly why the platforms are unreachable for so many people, their DNS records show that, like last week’s Slack outage, the problem is apparently DNS (it’s always DNS).
Cloudflare senior vice president Dane Knecht notes that Facebook’s border gateway protocol routes — BGP helps networks pick the best path to deliver internet traffic — have been withdrawn from the internet.
That first sentence is flush with irony.
Alas, as Charles Silver of Forbes recently opined, “The centralization and exploitation of data, and the use of it without users’ meaningful consent, is built into Web 2.0’s business model.”
What Web 3.0 promises is, of course, “decentralization.” That’s what Pomp champions.
The King of Crypto has been consolidating since early September. But that range-bound trading ended today as Bitcoin jumped to about $48,000 earlier. It’s since retraced back to around $47,000, but the move still rang the bell for bullish sentiment as large-cap altcoins followed suit.
Bitcoin was easily able to overtake its 21-day moving average today, and it’s a good sign that it has gained traction over the past three trading days. A close above $48,000 would be very bullish and it could signal the beginning of a promising breakout.
If it can continue with this momentum, we could be gearing up for a significant move higher. Bitcoin will face resistance at $48,000 and then $50,000. Though it’s still possible that it isn’t finished trading sideways.
Here’s Bitcoin’s price in U.S. dollars via Coinbase Global (Nasdaq: COIN):
Following Bitcoin’s lead, Ethereum is also have a great day. The second largest cryptocurrency by market capitalization broke its recent downtrend and even broke through its recent trading range. It’s already up 18% from last Friday’s low.
Ethereum could still face resistance if it dips below its 21-day moving average. But the EIP-1559 upgrade should continue to put positive pressure on prices as over 410,000 ETH have been burned to date. That translates to over $1.3 billion worth of ETH eliminated from its supply.
With fundamentals looking strongly bullish, we expect ETH to lead the altcoins higher if Bitcoin sets the positive trend.
Here’s Ethereum’s price in U.S. dollars via Coinbase:
Here’s Sam’s assessment of what’s a constantly evolving bigger picture for the still-nascent asset class:
Bitcoin suffered from a barrage of negative news coming from China last week, but investors are familiar with this song and dance.
China’s opposition to crypto is no secret and it has maintained that stance since 2013. The U.S. has taken a more positive stance recently, and policymakers are targeting a more accommodative approach.
Last week’s drop offered a nice opportunity to buy the dip given that Bitcoin has already recovered 17% since Friday’s low near $40,600. It would be very bullish if Bitcoin can confirm its breakout with confidence. Today’s strong price action looks promising as BTC diverges from its recent trend of higher-than-usual correlation with equity markets.
The Coinbase hack will certainly capture mainstream spotlight, highlighting the importance of maximizing security. Leaving cryptos on an exchange carries relatively little risk generally, but risks are still possible, and incidents happen. Hackers are sometimes able to exploit multi-factor authentication, so we recommend storing cryptocurrencies you intend to hold long term in a hard wallet.
Regardless of short-term setbacks, crypto adoption is moving full steam ahead. If Bitcoin breaks through a few more hurdles, it could march back towards its all-time high ... and bring the broad market along for the ride.
Click here to follow the quickly developing cryptocurrency revolution with Sam and the Weiss Crypto Alert team.
Best,
David Dittman