January 16, 2021 Crypto News Headlines.
Overview
If you follow the mainstream media for crypto advice, which is not an activity that we would typically recommend, Bitcoin is in a bear market. Never mind that it's up almost 200% in the last 3 months, according to the experts, a quick 25% drawdown means it's all over.
In other news, Polkadot is climbing the cryptocurrency rankings, taking the rest of the altcoins down a peg.
Larimer is out of EOS.
Hoskinson is big into Cardano and a Bitcoin milestone turned 12.
Bitcoin (BTC) dumping.
To see is to believe, right? According to a CNN quote;
Bitcoin plunges more than 20% in 3 days. It's now in a bear market.
Source : CNN.com
This headline deserves a gold medal. The amount of mental gymnastics you'd have to go through in order to believe that Bitcoin is in a bear market is staggering.
We're exactly half way through the month of January and at the time of that article was written, on January 12, Bitcoin still up 15% for the year. For those who aren't stepped in market wisdom, most investors expect to earn 8% per year on their investments. That's the sort of baseline assumption for the kind of returns you can expect in the stock market.
So, in 15 days, even after a 20% drawdown, Bitcoin still produced double the returns that stock market investors expect to get in 365 days.
From peak to trough, from $41,000 to just over $31,000, what we saw was only a 27% decline. More importantly, that dip got bought so fast that only a lucky few were able to catch it.
In a way, it's almost frustrating because there are so few opportunities to buy the dip. That being said, if you're like most of the people and you just lived through the 2018 bear market, you're probably pretty happy to see Bitcoin keep going up so fast. Onward and upward orange coin, and let's never have to think about $10,000 Bitcoin again.
Polkadot surges and surpass Litecoin (LTC) by market cap.
Even by crypto standards, Polkadot has been on a nice little rip. In the last 24 hours, the coin has gone up nearly 20%.
But to really appreciate what's going on, you have to take a step back to the monthly charts. In the last 90 days, the Polkadot token has gone up to 282%, a whopping gain that even makes Bitcoin's meteoric rise look a little bit sluggish.
The rankings are changing all the time of course, but as of today, Polkadot is now the number 4 cryptocurrency by market cap surpassing Litecoin.
Dan Larimer is out in EOS.
Dan Larimer is a crypto OG who has started multiple technology companies, particularly Steemit and Bitshares but most famously, Larimer helped to create the popular smart contract platform EOS.
Larimer has been working on the EOS blockchain since the spring of 2017, but that's all set to change as he announced his retirement from the project.
It's an interesting move considering that EOS, with its $4 billion ICO, is one of the most well funded crypto projects in the world, if not the most well funded project.
Now, there may be no surprise here if we pull back and look at his past MO, so something more than money must be driving Larimer as he explores other options. One factor could be the fact that despite its massive budget, EOS has failed to build out a big community similar to Ethereum's.
Larimer has also stated that he's leaving EOS to work on a "personal projects". It'll be interesting to see what he comes up with since Larimer's project have a way of turning out to be pretty big deals before it's all said and done.
Charles Hoskinson still bullish in Cardano.
One person who's not jumping ship is Charles Hoskinson, the co-founder of Cardano. In fact, Charles must be pretty pleased with what's going on right now as staking on the Cardano network has started to really take off.
As of January 15th, just under 70% of all Cardano (ADA) has been staked - that's 21.75 billion ADA token, worth about $7 billion at today's prices.
This is really good news for Cardano, as it proves that their decentralized staking model is offering enough incentives to get people staking.
All of this staking does lead to an interesting question about liquidity though:
Will it be bad for network health of 70% of all ADA tokens are backed up, leaving just a 30% liquid supply on the market?
Only time will tell. For now, though, we're happy for the Cardano team as years of hard work are finally paying off.
12 years ago since the first Bitcoin transaction.
12 years ago, this week, the first Bitcoin transaction took place, when Satoshi Nakamoto sent 10 BTC to the programmer Hal Finney.
This was a historic occasion, the first time in history that money was sent over the internet using distributed ledger technology, no banks, no centralized databases, no payments company but with just a couple of laptops and two very intelligent individuals. So, Happy birthday Bitcoin!
I'm thinking if DOT will pump more I'm planning to hodl DOT. Do you think it's a good idea?