In the last report, we predicted a strong rally on Ethereum after it hit an all-time record at $2,800. Since then ETHUSD gained another 50%, crossed the $4,000, and is strongly outperforming bitcoin, setting a new historic high at $4,175 on PrimeBit today.
It seems the next threshold will be Ethereum capitalization, which is now at $478 billion to cross the $500,000 barrier and surpassing half the overall worth of bitcoin, at the moment at $1.1 trillion. It all may happen this week, a strong correction is also possible, so make sure you trade major cryptocurrency pairs this week with us.
Bitcoin gained earlier this year as corporations revealed large investments in cryptocurrency. BTC once again started to be perceived as one of the go-to assets for hedging against inflation with central banks printing more fiat money as a stimulus to the economies hit by the pandemic and lockdowns. Tesla was the first to announce it, and some big banks like Goldman Sachs and Morgan Stanley followed.
Meanwhile, the second-largest cryptocurrency builds value around the growing adaptation and market applications of their blockchain network. Decentralized finance (DeFi)products, non-fungible tokens are gaining popularity. Mastercard, UBS, JPMorgan, and other financial industry leaders are actively investing in ethereum-based startups.
The growing interest resulted in an overload of the Ethereum network, showing inefficiencies and spikes in transaction costs. ETH community wants to solve this issue with a major upgrade and migration to Ethereum 2.0, which introduces staking, a feature that allows ETH 2.0 holders to freeze their funds, help secure the network, and earn interest rate profit. All news regarding this project is going to affect the ETHUSD price. Follow the news and updates about the upcoming upgrade and trade accordingly.
Meanwhile, BTCUSD fell 2% in April and is still looking for a stronger trend in the first half of May, despite being up almost 20% in the last two weeks.
Litecoin had a great week gaining 47%, as it rides the altcoin popularity.
Trade PrimeBit contracts, use up to 200x leverage to protect your larger positions in any of the cryptocurrencies you own or to make the most of the upcoming price moves. Good luck!