Bitcoin, Ethereum in the eye of the bullish storm; Square could emerge as a leading asset class

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  • Bullish price action as leading cryptos consolidate below record highs
  • Ethereum is attracting more interest, but Bitcoin remains strong
  • Number of tokens continues to rise, market capitalization over $ 2 trillion
  • Observable levels in Bitcoin and Ethereum futures
  • Watch Square (SQ); the company could be at the top of the asset class

Weather conditions tend to be calm before hurricanes, monsoons, or other violent storms. We can trace the origins of the saying “All calm before the storm” back to 1601. The phrase appears in Lewis Machin and Gervase Markham’s play The Dumb Knight.


Quickly locked in her bed with tight protection to devour you, my brave Paraquito; but quiet, no words, there is calm before the storm. “

The quote can be an excellent characterization of the cryptocurrency markets as the end of 2021 is only four months away. After trading to highs of $ 65,520 on April 14 and $ 4,406.50 in May, it fell to more than half of those levels and rebounded. With Bitcoin trading at the $ 50,000 level and Ethereum at $ 3,940 late last week, it could be a quiet time before the crypto frenzy returns with a vengeance.

Opponents of the emerging asset class continue to call for its demise. Last week, John Paulson, the investor who made billions in the 2008 real estate crisis, said crypto was a “worthless bubble.” Proponents are calling for the price of Bitcoin to climb to $ 100,000 by the end of 2021. Some see Ethereum reaching $ 8,000-10,000 per token later this year.

The bottom line is that cryptocurrency leaders are currently in the eye of either a bullish or a bearish storm, depending on who you believe.

Bullish price action as leading cryptos consolidate below record highs

At the end of last week, Bitcoin was back above the $ 50,000 mark, Ethereum around $ 4,000 per token. Since the late June low, the trend has been higher for both of the leading cryptos.

Source: CQG

The September chart shows a higher low in late July compared to late June and steady gains from July 26th to early September. The most recent high was $ 51,260 last Friday.

Ether futures daily

Source: CQG

flirted at the $ 4,000 per token level on September 3, more than double the price at the June and July lows.

Ethereum is attracting more interest, but Bitcoin remains strong

At its recent high, Bitcoin rebounded 77.8% from the June 21 low. Ethereum did better with a gain of almost 136%.

The market has embraced Ethereum’s protocol for the past few months. Ethereum is more versatile than Bitcoin because it processes transactions faster than the leading cryptocurrency. Additionally, in a world concerned with climate change, Ethereum is less energy-intensive, making it a greener crypto.

Meanwhile, Bitcoin remained the leader in the asset class until Friday, September 3. At the $ 50,600 level, its market cap was $ 951.745 billion, which is 41.6% of the market cap of the asset classes. At $ 3,970 per token, Ethereum had a market cap of $ 465.477 billion, accounting for 20.3% of the value of all cryptocurrencies.

Bitcoin and Ethereum continue to dominate with 61.9% of the market capitalization. Cardanos (ADA) $ 96.074 billion is just 4.2%. The value of Bitcoin is one-tenth and about one-fifth that of Ethereum.

Number of tokens continues to rise, market capitalization over $ 2 trillion

The flood of new tokens entering the asset class has continued despite the price movements in cryptocurrencies. At the end of last week, just over 11,600 tokens were floating in cyberspace.

At the end of the second quarter of 2021, the number was 10,725. On December 31, 2020 there were 8,153. So far, in 2021, the number of cryptocurrencies has increased by 42.25%. Meanwhile, the market cap of all cryptos was $ 2.291 trillion, nearly 200% above the $ 767.482 billion level at the end of last year. Bitcoin’s market capitalization is now higher than the value of the asset class at the end of December 2020.

Observable levels in Bitcoin and Ethereum futures

Bitcoin and Ethereum are set to challenge the all-time highs of April and May in the coming weeks and months. Technically, both saw parabolic upward movements, brutal corrections, consolidations, and rallies.

While markets in many asset classes can take months or years to go through the price cycle, with cryptos the process seems to be a snap.

The development of the crypto revolution or fintech could better be described as fast tech.

BTC / USD Weekly

Source: CQG

The graph above shows the critical levels for Bitcoin, $ 28,800 down and $ 65,520 up. The current trend favors a run to the highs over another test of the lows.

Ether futures weekly

Source: CQG

In Ethereum, support is at $ 1,697.75 and resistance is at $ 4,406.50 per token. Ethereum probed the $ 4,000 mark late last week. The odds speak for a new high for Ethereum before Bitcoin climbs to new record levels.

Watch Square: The company could rise to the top of the asset class

At a cryptocurrency conference this summer, Squares (NYSE 🙂 founder Jack Dorsey declared his support for Bitcoin, saying:

“It reminds me of the early internet.”

In early June 2021, Dorsey said:

“Bitcoin changes absolutely everything … I don’t think there is anything more important in my life to work on.”

Dorsey is a technology pioneer; As the co-founder and CEO of Square – he holds the same position on Twitter (NYSE 🙂 – Dorsey heads two public companies with a combined market cap of $ 175 billion as of late last week. While TWTR, the social media company that has the higher profile, SQ, its payment company, is worth more than twice as much.

Square is working on an open platform that will create a decentralized exchange for Bitcoin with applications for other leading cryptos. Dorsey recognizes that custody and security are the asset class’s Achilles’ heel. SQ is perfectly positioned to solve the problem, and Dorsey tweeted about a “new #bitcoin hardware wallet.”

SQ monthly

Source: Barchart

The chart shows the rise of SQ shares from an opening price of $ 11.20 in November 2015 to its recent high of $ 289.23 in August 2021. At $ 269.74 late last week, higher highs are likely in sight.

The uptrend in cryptocurrencies and Squares custody and security efforts are likely to put the company at the forefront of companies benefiting from continued asset class growth.

Bitcoin, Ethereum and cryptocurrencies were in the eye of a bullish storm as they consolidated after falling from record highs. Towards the end of 2021 the eye seems to pass and the bullish winds are lashing again.

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