Crypto Roundup, January 11, 2021: Crypto takes breather after hitting $1T market cap

Bitcoin tags $40K and Ethereum approaches all-time high before market pullback

As protestors stormed Capitol Hill last Wednesday, Bitcoin broke through $40K, pushing the total crypto market cap beyond the $1 trillion threshold.

The Democrat’s narrow victory over the senate fuelled the Bitcoin rocket further, creating expectations that a unified government legislature will pave the way for fiscal stimulus worth up to $3 trillion.

This pushed the crypto market rally into overdrive. Stellar doubled before finishing the week with 50% gains, and Ethereum approached all-time highs before Bitcoin put an end to the fun by tumbling all the way back to $33K.

This Week’s Highlights

  • Stellar outshines market with dazzling rally
  • Ethereum approaches all-time high

Stellar outshines market with dazzling rally

Stellar is shining more brightly than ever. The payment-focused cryptocurrency doubled this week, hitting highs above $0.40 before pulling back to find support at $0.25.

Expectations for the cryptocurrency have grown after reports surfaced that Ukraine had selected the Stellar blockchain for its CBDC, and the OCC announced that American banks could use public blockchains and stablecoins as settlement infrastructure. This follows the news from last October that $USDC will land on Stellar in 2021.

Ethereum approaches all-time high

Ethereum soared over 50% during the week, teasing traders with the prospect of fresh all-time highs above $1,420.

The second-largest crypto topped out at $1,350 before a violent retracement took the cryptocurrency as low as $1,020.

Other metrics however, have already hit fresh highs. Google Searches for “Ethereum” are set to break 2017 levels, market capitalization has set a new record, and network fees have followed suit — suggesting high levels of activity could soon cause prices to rally beyond current levels.

The week ahead

After climbing more than 40% in the first eight days of 2021 to double the previous all-time high, a pullback is now in play as Bitcoin hovers around $33K.

In previous bull rallies, Bitcoin dipped between 20-40% before resuming the uptrend. Such a downturn would take prices as low as $25K.

According to legendary investor Bill Miller however, the rally is not over yet. He told CNBC on Friday that investors should expect Bitcoin to be “very, very volatile”, but also that he expects the cryptocurrency to surge “50-100% in the next 12 to 18 months”.

adrinvestors.com

You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
General Risk Disclosure | Terms & Conditions

Create your website with WordPress.com
Get started
%d bloggers like this: