While the two leading cryptocurrencies continue to move sideways, whales are starting to enter in small-cap altcoins.
Contrary to numerous forecasts that Bitcoin is about to soar, or that Ethereum will soon break through the top level, both of the leading cryptocurrencies continue to consolidate. Big players got tired of waiting and decided to invest in three altcoins according to Crypto Research Report. It’s about Aave (LEND), Ren (REN), and Kyber Network (KNC) that occupy 31st, 64th and 36th ranks respectfully in the market capitalization rating. They have attracted the players’ attention with the greatest dynamics over the past few months. Within 30 days, the balance of TOP 100 whales invested in Kyber Network increased by KNC 30.6 million (about $48 million); the balance of TOP 100 whales Aave increased by 39.6 million LEND (about $10 million); the balance of the TOP 100 Ren whales increased by REN 5.3 million (about $850K).
According to former crypto fund manager Demelza Hays, the accumulation of funds by whales is a clear sign of their optimism towards these three tokens and good prospects. Retail investors also followed the whales. Demelza Hayes notes that since the beginning of the month, the number of addresses with more than 1,000 REN has increased by 550; addresses with the sum of more than 1000 LEND increased by 817; the additional number of addresses with more than 1K KNC was 150. Demelza Hayes predicts that investors will hold these assets in the hope that the selected altcoins will continue to rise.
But pessimism about the leading cryptocurrency continues to grow too. It even goes so far as to predict a hard fall in Bitcoin Dominance. Perhaps now we see the dominance above 66% for the last time, as technical factors indicate its imminent fall. The exodus of investors from BTC may happen due to the lack of privacy. Not everyone is happy that the Bitcoin blockchain makes it easy to track user activity. Many altcoins are much better protecting the privacy of investors with the same volatility. These are, for example, Monero, Dash, and Zcash. Additionally, Bitcoin’s scalability issues are still not resolved. The famous second-layer solution Lightning Network turned out to be a dead end. Ethereum is already poised to offer a much more successful solution.
The traditional view of Bitcoin as digital gold and a way of accumulating value is also being questioned. Recently well-known crypto pessimist Peter Schiff posted a new judgment. On his Twitter account, he laughed bitterly at Tudor Jones, founder of the Tudor Investment hedge fund. Peter Schiff believes that Jones “bet on the slowest horse in the race” when he invested 1% of his assets in BTC.
It looks like @tudorjoneshedge ended up betting on the slowest horse in the race. In fact, #Bitcoin will not even finish the race. If Paul really wants to bet on a faster horse than #gold he should move his Bitcoin chips over to #silver, or try some gold and silver mining stocks.
— Peter Schiff (@PeterSchiff) July 21, 2020
Schiff is confident that both gold and silver will provide more profit to investors, and also drew attention to the shares of companies engaged in the extraction of precious metals, which, in his opinion, will grow even faster. Although Schiff himself regrets that he did not buy Bitcoin in 2011 at $1. If he did he’d be $9 million richer today.