News Updates May 20 & 21, 2023
1. PEPE Shoots Up 12% Daily, Bitcoin Shaky at $27K (Weekend Watch). PEPE has resumed its bull run with a notable double-digit price pump.
After sitting below $27,000 for a few days, bitcoin finally jumped above that level in the past 24 hours but is yet to decisively reclaim it.
Most altcoins are with insignificant gains on a daily scale, aside from the trending memecoin – PEPE.
Bitcoin Uncertain at $27K
Last week started on a positive note for bitcoin, which jumped to over $27,600 after the stagnant weekend. However, that was short-lived, and the asset retraced to below $27,000 in a matter of days. Another price pump followed that drove it back up to $27,500, which, yet again, was stopped in its tracks.
This time, the rejection was even more vigorous and pushed the cryptocurrency south to a weekly low of $26,400 (on Bitstamp). The bulls tried to intercept the move and helped BTC recover some ground.
As such, bitcoin returned to familiar ground of around $27,000 and stood there for a few days. It finally jumped above it hours ago but was stopped once more at $27,300. Despite losing some value since then, BTC still stands inches above $27,000 as of now.
Its market cap has risen slightly to $525 billion, while its dominance over the altcoins sits close to 46.5%.
PEPE on the Rise Again
All eyes in the crypto community have been focused on PEPE for the past month or so, as the memecoin went from an unknown coin launched in mid-April to a massive trend with a market cap of almost $2 billion a few weeks later.
After making several savvy investors millionaires overnight, it was listed on multiple prominent exchanges, including Binance, which turned out to be a sell-the-news moment. PEPE lost some of its momentum, and its market cap dumped by over a billion in days.
The past 24 hours were a lot more positive for the memecoin, as it has added over 12% of value and is back within the top 70 largest cryptocurrencies.
The larger-cap alts are also in the green on a daily scale, albeit in a more modest fashion. ETH, BNB, XRP, ADA, MATIC, SOL, LTC, DOT, and TRX have all jumped by up to 2% in a day.
The total crypto market cap has added around $10 billion daily and sits at $1.130 trillion.
2. Binance’s Bullish Implication: Interpreting their Bitcoin-Centric Tweet.
With a simple tweet about Bitcoin, Binance may have provided insight into their beliefs regarding the future direction of the digital asset.
When the largest cryptocurrency exchange in the world speaks, or in this case, tweets, the crypto community takes notice. In a recent tweet, Binance shared three distinct numbers: 8 billion (the world’s population), 62.5 million (the number of millionaires globally), and 21 million (the total number of Bitcoin that will ever exist). This simple but potent statement might offer insights into Binance’s beliefs about Bitcoin’s value and future potential.
It’s crucial to highlight that the tweet doesn’t explicitly promote Bitcoin. Instead, it lays out the figures that underpin the cryptocurrency’s scarcity dynamics. The supply of Bitcoin is finite, but the potential market — in this case, millionaires worldwide — vastly outnumbers it.
This scarcity is a fundamental tenet of Bitcoin’s value proposition. It’s what sets Bitcoin apart from traditional fiat currencies, which central banks can print in unlimited quantities. Binance’s tweet seems to underscore this point, emphasizing the limited supply of Bitcoin in the face of a potential large and growing demand base.
The choice of presenting these figures in a tweet also indicates Binance’s understanding of Bitcoin’s appeal to a broader audience. By relating Bitcoin’s availability to the number of millionaires and the world’s population, the company could be hinting at the potential for wider adoption.
However, it’s crucial not to misconstrue this analysis as an endorsement or promotion of Bitcoin. It’s more about understanding the beliefs that a significant player in the cryptocurrency market might hold about Bitcoin’s value, as inferred from the information presented in their tweet. After all, tweets can sometimes tell us more than meets the eye.
The tweet by Binance highlights the scarcity of Bitcoin. The implication here could be interpreted as bullish because if demand outpaces the limited supply, it could lead to an increase in the value of Bitcoin. However, this interpretation doesn’t mean that Bitcoin’s value will indeed increase. Many other factors, like regulatory changes, technological developments, and broader market trends, will also impact Bitcoin’s future value.