Polkadot price adds 19%, Filecoin Crashes and ETH/USD breaks $2k
Polkadot price breaks above $40
- Filecoin crashes on Fool’s day
- Ethereum price breaks $2k
- Institutions dump gold for Bitcoin
Trending News: Filecoin Crash, Institutional inflow to Bitcoin, ETH/USD race above $2k
Crypto is all about innovation. DeFi, NFTs, are all but examples. A tip of an iceberg. There are other exciting sub-sectors that blockchain will inevitably revolutionize.
Filecoin is working on releasing a new file storage mechanism that stores data on the “what,” not on the “where.” Here, it means data storage and sourcing wouldn’t be location-based.
Filecoin combines with IPFS, a peer-to-peer distributed network protocol, to make a more efficient and secure web free from corporate control.
Filecoin is a decentralized storage network designed to stored humanity’s most important information#filecoin #uniswap
— FILE_Official (@file_finance) April 1, 2021
For their innovation, especially around IPFS, the FIL price rose from around $30 to $230 in March, an 8X expansion only to crash on Apr 1.
#Filecoin #FIL from $84.30 to $234.47 in just 14 days🔥🚀 pic.twitter.com/qjBqWcajmD
— Cryptoflies (@Cryptoflies_) April 1, 2021
Even at present valuation, FIL is at the top-20 most liquid market cap.
However, skeptics are concerned about its total supply, with some arguing that the token is massively overvalued.
Filecoin is massively overvalued and when it eventually crashes it will be in a 2017, -90% style.
— ⭐️🩸Fiskantes (smell, smell) (@Fiskantes) March 31, 2021
Inflow to Bitcoin and Outflow from Gold ETFs
Meanwhile, according to JP Morgan, institutional investors are now opting out from gold ETFs to Bitcoin products.
Since Oct 2020, there have been over $20 billion in outflows from gold ETFs, during which $7 billion moved to Bitcoin during the same period.
At this time, the Bitcoin price is up a massive 6X, rising from $10k to over $62k in mid-Mar 2021.
According to JPMorgan, institutional investors are choosing #Bitcoin over gold.
Gold has seen $20 billion in fund outflows since mid-October, compared to $7 billion in bitcoin fund inflows over that same time period. pic.twitter.com/p4BDh8nczZ
— Bloqport (@Bloqport) April 3, 2021
Tesla, MicroStrategy, and a host of public and institutions seek BTC exposure either through direct purchase or BTC products like regulated futures or Grayscale Investments’ GBTC.
With institutional entry, analysts expect the Bitcoin price to race above $100k in the medium term.
They cite the FED’s urge to print more money and the emergence of Bitcoin as a superior value-preserving asset than gold.
Ethereum breaks above $2k
The Ethereum price, on Apr 2, closed above $2k to effectively become the 33rd most valuable asset in the world with a market cap of over $240 billion.
Ethereum is now the 33rd most valuable asset in the world by market cap.
— Documenting Ethereum 🦇🔊 (@DocumentEther) April 2, 2021
Ethereum continues to develop, refining its platforms, with present needs of shifting to a Proof-of-Stake consensus algorithm where over $7 billion of ETH are locked in the official deposit contract. Some proponents expect ETH to reach $3k by the end of April.
#ethereum going to $3,000 in April?
— Lark Davis (@TheCryptoLark) April 3, 2021
As Ethereum plans to migrate, DeFi alone manages over $47 billion of assets. More DeFi protocols plan to shift to Layer-2 for lower transaction fees and faster settlement.
JUST IN: VISA Completes First Cryptocurrency Transaction on #Ethereum
— Market Meditations (@MrktMeditations) March 29, 2021
It comes at the back of Visa settling on Ethereum in partnership with Crypto.com and a regulated crypto bank, Anchorage.
Polkadot Price Prediction
In the age of interoperability, Polkadot is emerging as the leader.
The DOT price is one of the top performers, starting the month strongly against the greenback. On the last day alone, the DOT price is up a massive 19 percent, adding 32 percent week-to-date, charting in new territories above $45.
Even at spot rates, the DOT price remains undervalued–an opportunity for traders. Notably, there has been a confirmation of the three-bar bullish reversal pattern of Mar 24 to 26.
The complete reversal of late Feb 2021 losses with increasing volumes above Q1 2021 highs builds a firm ground for a new high. Already, bears are nullified from an Effort-versus-Results perspective following the close above $40 in a bull breakout.
Anchoring on Q1 2021 trade range, the next feasible target for DOT/USD bulls is $65—the 1.618 Fibonacci extension level.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.