April has seen a crazy, wild and tumultuous ride for bitcoin, though not so much for ethereum, which has basically seen a one way ride up for April, marking a new record of 7 consecutive monthly green candles for the second largest crypto by market cap.
Bitcoin’s dip
Bitcoin, at one point in April, also seemed to be well on track to mark its very own record of 7 green monthly candles after touching a new high of $64K. But then it came tumbling down, all the way to $47K, before rising back up like a good batch of dough, to close the April at $57,775.
It was a nerve wrecking month for sure. This was also the month bitcoin dominance dipped under 50%, signaling that perhaps, the altcoin season is well and truly here. However, we should not forget that in the eyes of institutional buyers, Bitcoin is still the big boy. In fact, Korean game developer Nexon just announced that they had purchased $100M worth of Bitcoin.
For the longer term health of bitcoin, perhaps a break in April was a good thing, and hopefully we’ll see the bull case continue marching on in May, building out a new series of nice green candles.
ETH rises
Ethereum, on the other hand, truly took our breaths away with its astounding march onward and upward. Many people have since come out with predictions of a US$10,000 price target this bull run for ETH, and looking at this chart… I have to say, it really is possible.
Ethereum closed April at $2,777, but as you can see from the charts, in just the first 4 days of May, it is up by another 18%, currently sitting at $3,287. In fact, Ethereum’s price action currently resembles the price action of Bitcoin in 2017, where it broke through the previous highs of $1K, and bulldozed its way up to $19K before deflating.
This bull run, with the backing of institutions finally FOMOing in, looks set to repeat the percentage increases in 2017, but maybe without the drastic 80% harsh winter bear markets, since we now have a stronger base of diamond hands, and not purely based on retail speculation.
Ethereum, in terms of product development, also has a lot going for it, with ETH 2.0 underway, and with fee burning getting introduced in time, we’ll see a future ETH becoming a deflationary asset with EIP1559 rolling out. The EIP1559 upgrade is being planned for July 2021.
I have (all time) high hopes for both BTC and ETH in May. May the force be with us!