Bitcoin Pullback Could See Alts Flourish

Bitcoin finally saw a pullback yesterday after a momentus run that saw it tip $8,366, which caps a magnificent May that has seen it rise over $3,000 in just two weeks. It was clear that the parabolic run couldn’t continue indefinitely and yesterday it finally ran out of steam, at least in the short term, and pulled back to the $7,700 mark before a small bounce.

Given the nature of its run it’s almost impossible to predict where it might eventually drop back to, or if it will re-test the yearly highs it posted Tuesday. As expected, alts didn’t fare too well as BTC tumbled, with many slipping into the red or hovering in the green, except for LINK, who announced their mainnet at Consensus, and XRP, who both saw gains in the twenties. However, if BTC can continue within its current range for a week or two, we should start to see some serious gains in alts across the board.

Investors Search for Reasons

As the entire cryptosphere sat scratching their heads to try and work out what had caused the crazy price action, some put forward theories, including retail buyers getting back in on the back of mainstream media coverage, institutions not wanting to miss out, and the growth of adoption in the sector:

Certainly news coming out this week that Bakkt is preparing for a July launch and Starbucks, Nordstrom, and Whole Foods now accept Bitcoin stoked the flames, but the fire was already lit by that point, perhaps by good old FOMO after its quick burst through the $6,000s.

Binance Fails to Come Back Online

Binance was expected to have resumed full operations Tuesday, which some predicted would have a negative effect on the market, but an announcement early Tuesday stated that this would not be completed until Wednesday morning (UTC time). Given that BTC has already had a haircut, it will be interesting to see what impact a 6-8 hour trading freeze will now have on the price. Although it seems Binance CEO Changpeng Zhao may have had other things on his mind…

Comments (No)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.