Why Did Bitcoin Go Up Today?
Bitcoin didn't go up today, in fact as of the time of this writting it's dropped by 2038 dollars in value, or -3.63%. Why did Bitcoin go down today? Most cryptocurrencies fell today on news that the economy is recovering far more quickly than previously anticipated resulting in the 10 year Treasury bond yield increasing by 2.21%, so far today. Increases in treasure yields can cause decreases in equities and cryptocurrencies such as Bitcoin and Ethereum.
Bitcoin has seen downward price pressure over the past two weeks for a number of reasons: a power outage in China caused Bitcoin miners to go offline, Turkey has banned all cryptocurrencies--including Bitcoin, Biden's capital gains tax plan announcement, and short term holders have been selling due to concerns that Bitcoin might be overpriced.
We continue to keep our 2021 Bitcoin price target of $100,000 by year end. Selling Bitcoin in the face of bad news is to be expected and this has numerous benefits to the Bitcoin market including reseting the perpertuals funding rate and reducing the entry cost for new investors or for this seeking to buy on the dip.
Why Did Ethereum (ETH) Go Up Today?
Ethereum is the second largest crypto currency in market cap terms at $388 billion with 116 million ETH in circulation. Why is Ethereum up today...and these past few weeks? ETH is presently undergoing a pretty radical transformation to ETH 2.0 which will allow for faster on-chain transactions, less GAS fees (fees paid for each transation), and importantly, ETH has changed from proof of work, which is mining like Bitcoin, to proof of stake, which is far less computationally heavy. For all of these reasons, Ether has experienced dramatic increases in price.
Why Did DogeCoin (DOGE) Go Up Today?
Dogecoin is one of my favorites and I know I'm not alone! Elon Musk, Snoop Dog, to name a couple a big fans and likely large holders of DOGE. Why's Dogecoin up today? It's still darn cheap, that's one reason. A cheap Dogecoin means it's easy to afford and buy that other crypto coins. Another reason DOGE is up today is the anticipation that Elon Musk will mention it during his appearance on Saturday Night Live this weekend. Cross your fingers people! And lastly, today Gemini began to support trading for Dogecoin, and the first week of trading is free. This opens up trading of DOGE to millions of new crypto investors, a big move for DOGE.
Written Thursday, April 29, 2021. Updated May 5, 2021