Bitcoin, Ethereum and Dogecoin are all posting 12+% price gains at the time of writing [5:53 PM EST] just over 2 hours before Monday’s daily candle close at 12:00 UTC.
Bitcoin Bulls Fighting Back
Bitcoin [$53,082.55] led the rally Sunday night when prices bounced off of a low of $47,079.14 and rallied more than $6,000 to regain $53,000. Currently, the Bitcoin market cap is just under $1 trillion [$998.03 bil] with $28.05 billion worth of volume over the last 24 hours.
Ethereum price Continues to Lead the Juggernauts
Ethereum continues to climb higher and is still outperforming Bitcoin for the last 12 months. Ethereum [$2,490.15] is +1,170% over this same timeframe. The world’s second largest cryptocurrency by market capitalization with a market cap of $287.2 billion dollars has outpaced BTC by 83.08% over the last year.
Dogecoin price Bounces with Market
Doge, like it or not, continues to remain in the Top 10 crypto’s by market cap and also posted 12+% gains for much of Monday. Doge [$.259] has a current market cap of $33.729 billion dollars and has posted $5.06 bil of volume over the last 24 hours.
Aggregate Market Capitalization
The total crypto market capitalization [$2,040,037,466,313] is also back inside the rising wedge pattern it has been painting on the charts since late February this year. Bulls have definitely won the last 24 hours but bears will likely push harder the next few days to close out this month’s futures contracts and options. Bulls will look to continue the price markup and hope for a continuation of Monday’s price action reversal to the Upside.
Politics and Policy Drove Some of Last Week’s Selling?
Last week’s news of Joe Biden’s plan to raise income taxes and capital gains on all assets including cryptocurrencies likely contributed to the major sell off experienced over the last week. Ironically, the tax hike could actually expedite the desire for holders to never sell with the disparity in tax rates per number of years a person holds a particular cryptocurrency asset quite vast.
Chamath Palihapitiya, the multi-billionaire entrepreneur, owner of The Golden State Warriors of the NBA and angel investor tweeted Monday about Biden’s proposal.
Reacting to Biden’s proposal, here is a modification, tax rate indexed to holding period:
Less than 1yr: 75%
US Gov’t would maximize tax revs where most selling occurs AND incentivize long term holders to keep it up…
— Chamath Palihapitiya (@chamath) April 26, 2021
With the game theory aspect baked into the Bitcoin paradigm, it will be interesting to see if Americans vote with their feet. Will crypto investors and startups begin emigrating outside of the United States to more crypto friendly locations that are ready to embrace the future of blockchain technology and leave Biden’s tax plan behind?