The mood in the crypto market has turned, profit-taking has left its mark on the altcoin market and has pushed Bitcoin well below the record high again. No problem for Cathie Wood. In the long term, the crypto reserve currency is facing an unprecedented price explosion. The market update.
Sales determine the start of the week on the crypto market. With the exception of the Solana course (SOL), which has gained two percent in the last 24 hours, the ten largest cryptocurrencies by market capitalization are still on the dive. Bitcoin (BTC) buckled by three percent to 57,377 US dollars and is twelve percent in the red on a weekly basis. Ethereum (ETH), Binance Coin (BNB), Cardano and XRP also record setbacks of up to four percent. Likewise, the new No. 10 on the market, AVAX. The price loss is bearable, however: AVAX reached a new record high of 144 US dollars overnight, and in a weekly comparison AVAX is 40 percent up.
Back of chairs
Memecoin friends had to get used to the picture: For the first time in weeks, there was no Memecoin in the top ten yesterday. After Shiba Inu, who has now been pushed to twelfth place, Dogecoin also caught it for a short time, whose market capitalization was taken by surprise by the soaring avalanche. At the time of going to press, Dogecoin had just barely restored the balance of power, but the AVAX rally is still going on and it shouldn’t have been the last to move.
The flippening could hardly better reflect the contrasting trends in the crypto market. Dogecoin (DOGE) is the Memecoin pioneer who has shown all dog coin clones that there is no need for token added value as long as the drum is promoted on social networks. Avalanche, on the other hand, is one of the most ambitious Ethereum chasers. The increasingly visible weaknesses of Ethereum are the Avalanche strengths: cheap and fast transactions. The “Platform of Platforms” continues to prove its qualities on the DeFi market. With a total value locked of over 12 billion US dollars, Avalanche is currently the fourth largest DeFi platform according to Defi Llama, and is about to oust Solana from third place.
Cathie Wood: Bitcoin hits half a million dollars
Given the current fluctuations, it seems unlikely that Bitcoin will reach the US $ 100,000 anticipated by the stock-to-flow model this year. Cathie Wood, CEO of the investment company Ark Invest, is sticking to her bullish Bitcoin price forecast, even if she stretches the time frame a little further. According to Wood, Bitcoin could soar to $ 500,000 in five years on one condition.
Opposite to MarketWatch Woods calculates that the Bitcoin price could reach over half a million US dollars if “institutional investors get into Bitcoin and allocate five percent of their portfolios”. An assessment that Wood should make friends with among Bitcoin investors. How realistic this scenario is, however, will probably also depend on whether digital gold replaces physical precious metal as the most popular asset class. If Bitcoin rises to $ 500,000, the market capitalization would have to be over $ 9 trillion and have absorbed large parts of the gold market cap, which is currently at $ 11.7 trillion.