Crypto Bit Bybit: KOL Matters Part 2

You are reading Crypto Bit Bybit, a quick round-up of important opinions and trends in the crypto market that you don’t want to miss. 

Again, we will look at crypto influencers on social media platforms and explore their points of view on the current market stagnation. The market has not witnessed much movement since Bitcoin entered the “stablecoin” period. Repeated failures to break out against resistance has caused market fatigue, signaled by price pullbacks and the lack of volatility.  

Interviews With Early Pioneers 

Erik Voorhees, one of the earliest crypto entrepreneurs, shares his concerns about a looming global debt crisis in the next five years, during an interview with Cointelegraph. The stratospheric exponential growth of government debts is an alarming sign that something is fundamentally wrong with the current monetary policies. Voorhees believes that when the financial meltdown arrives, investors would inevitably fall back on crypto. A self-proclaimed crypto pluralist, Voorhees thinks that 90% of altcoins are merely distractions that are pulling people’s attention away from the core projects, namely BTC and ETH. 

In a separate interview, Dan Held, a serial bitcoin entrepreneur, recounts his experience with crypto since the nascent stage. A trip down the memory lane reminds us how far Bitcoin infrastructure has come so far. The current robust landscape with massive liquidity and strengthened community support is hard evidence of the longevity of Bitcoin as a new asset class. With 90% of his portfolio allocated to Bitcoin, Held has high expectations of Bitcoin volatility and the next bull run. He believes that Bitcoin is poised for another tremendous bull run in the next 10 years. Though slowly recovering to the historic high in 2017, Bitcoin’s market cap is merely a fraction of the market cap of gold. Thus, there is immense potential to be explored. According to Held, the next bull run is likely to be stronger than other cycles, as the crypto space is tapping on greater inflows of institutional money, better marketing strategies, and general receptive attitude towards crypto. Held concludes that the supercycle can potentially reach 1 million. 

Bull or Bear?     

However, not everyone shares Held’s bold, optimistic vision. The stagnant market has shaken the beliefs of some of the world’s biggest Bitcoin bulls. Mike Novogratz, an analyst well-known for the $20,000-by-2019 prediction, only to be proven catastrophically wrong by the market, sounds a note of caution. He recommended against putting most of their funds in crypto due to Bitcoin’s sheer volatility. He told CNBC on July 8 that it is safer to buy more gold than BTC, despite BTC outperforming gold by a substantial margin. 

Nicholas from DataDash thinks that despite all, Bitcoin is galvanizing towards a breakout against resistance above 10k. Similarly, he believes that ETH is temporarily side-stepping while maintaining the current price but will eventually break out above $300. Although altcoins are stealing the thunder by continuously logging double-digit returns, a majority of crypto influencers are trying to shift the focus back on BTC, by appealing the investors to look at shorter timeframes.  

The Moon contends that altcoins’ bullish patterns are dependent on Bitcoin’s price movement. The Moon posits Bitcoin’s bearish resistance at USD 6200 within the Fibonacci golden pockets through technical analysis,. He foresees the tendency of Bitcoin dominance eventually breaking out above 80%, pushing the price towards USD 20000. 

On July 9th, PlanB conducted an impromptu poll among 13800 individuals. The result shows that 65.6% of respondents are currently holding Bitcoin, while the buying to selling ratio is around 4.7 to 1, revealing a prevalent bullish sentiment among investors who are active on Twitter. 

Source: PlanB

Irrationality Cannot Live on

On a different note, the price of dogecoin, a cryptocurrency created as a parody based on a popular meme, was driven up by 125% last week. It has accumulated loyal followers based on the extremely popular platform TikTok, most of whom mistake dogecoin as a sort of stock. The frenzy has cooled substantially since hitting highs last Wednesday, indicating that any irrational run-ups will eventually be thwarted by rational thinking.