If you follow the mainstream media for crypto advice, which is not an activity that we would typically recommend, Bitcoin is in a bear market. Never mind that itâ€™s up almost 200% in the last three months, according to them, a quick 25% drawdown means itâ€™s all over.
In other other news, Polkadot is climbing the crypto rankings, taking the rest of the altcoins down a peg. Larimer is out of EOS, Hoskinson is big into Cardano and a Bitcoin milestone turned twelve! Thanks for joining us everybody for the rundown on all things that matter in this crazy ecosystem on this weekâ€™s Exodus Crypto news. Youâ€™ve got to see it to believe it. According to a CNN, quote, â€œBitcoin plunges more than 20% in three days.
It’s now in a bear market.â€ This headline deserves a gold medal. The amount of mental gymnastics youâ€™d have to go through in order to believe that Bitcoin is in a bear market is staggering. Weâ€™re exactly halfway through the month of January and at the time that this article was written, on January 12th, Bitcoin was still up 15% for the year.
For those who arenâ€™t steeped in market wisdom, most investors expect to earn 8% per year on their investments. Thatâ€™s sort of the baseline assumption for the kind of returns you can expect in the stock market.
So in fifteen days, even after a 20% drawdown, Bitcoin still produced double the returns that stock market investors expect to get in 365 days. Ofâ€¦ From peak to trough, from $41,000 to just over $31,000, what we saw was only a 27% decline.
More importantly, that dip got bought so fast that only a lucky few were able to catch it. Just 3 measly days after the crash started and Bitcoin is already back up to $40,000. Weâ€™re just one 8% move away from breaking through $42,000 and setting all-time highs, again. In a way, itâ€™s almost frustrating because there are so few opportunities to buy the dip.
That being said, if youâ€™re like us and you just lived through the 2018 bear market, youâ€™re probably pretty happy to see Bitcoin keep going up so fast. Onward and upward, orange coin, and letâ€™s never have to think about $10,000 Bitcoin again. Even by crypto standards, Polkadot has been on a nice little rip. In the last 24 hours, the coin has gone up nearly 20%. But to really appreciate whatâ€™s going on you have to take a step back to the monthly charts.
In the last 90 days, the Polkadot token has gone up 282%, a whopping gain that even makes Bitcoinâ€™s meteoric rise look a little bit sluggish. The rankings are changing all the time of course, but as of today, Polkadot is now the number 5 crypto by market cap. Catch you later Litecoin.
Dan Larimer is a crypto OG who has started multiple technology companies seem and bit shares but most famously, Larimer helped to create the popular smart contract platform EOS. Larimer has been working on the EOS blockchain since the spring of 2017 but thatâ€™s all set to change as heâ€™s announced his retirement from the project.
Itâ€™s an interesting move considering that EOS, with its $4 billion ICO, is one of the most well-funded crypto projects in the world, if not the most well-funded project. Now there may be no surprise here if we pull back and look at his past MO so something more than money must be driving Lairimer as he explores other options.
One factor could be the fact that despite its massive budget, EOS has failed to build out a big community similar to Ethereumâ€™s. Lairimer has stated that heâ€™s leaving EOS to work on, quote, â€œpersonal projects.â€ Itâ€™ll be interesting to see what he comes up with since Lairimerâ€™s projects have a way of turning out to be pretty big deals before itâ€™s all said and done. One person whoâ€™s not jumping ship is Charles Hoskinson, the co-founder of Cardano.
In fact Charles must be pretty pleased with whatâ€™s going on right now as staking on the Cardano network has started to really take off. As of January 15th, just under 70% of all Cardano ADA has been staked. Thatâ€™s 21.75 billion ADA tokens, worth about $7 billion at todayâ€™s prices. This is really good news for Cardano, as it proves that their decentralized staking model is offering enough incentives to get people staking.
All of this staking does lead to an interesting question about liquidity though. Will it be bad for network health if 70% of all ADA coins are locked up, leaving just a 30% liquid supply on the market? Only time will tell. For now, though weâ€™re happy for the Cardano team as years of hard work are finally paying off.
Get a cake and bust out the candles for Bitcoinâ€™s birthday. Twelve years ago this week the first Bitcoin transaction took place when Satoshi Nakamoto sent 10 BTC to the programmer Hal Finney. A historic occasion, the first time in history that money was sent over the internet using distributed ledger technology.
No banks, no centralized databases, no payments company. Just a couple of laptops and two very intelligent individuals. Happy birthday, Bitcoin! Remember to smash that like button and if you enjoyed this video subscribe to the channel for more weekly crypto news, entertainment and education.
Thanks for watching and, Until next time, HODL on!