Bitcoin and Ether Market Update: May 1, 2019
The total crypto market cap increased by $5.3 billion since Monday, April 29 and now stands at $175.6. The top ten currencies are all in green for the 24-hour period with Bitcoin Cash (BCH) and Litecoin (LTC) being the best performers with 13 percent and seven percent in respective gains. At the time of writing, bitcoin (BTC) is trading at $5,312 on the Bitstamp daily chart, while ether (ETH) stands at $159 and Ripple’s XRP climbed to $0.32.
The difference is likely caused by traders exiting their positions in Tether (USDT) and converting them in bitcoin. Given the current circumstances and for the purpose of this analysis, the rest of this post will use Bitstamp charts.
Stuart Hoegner, general counsel to Tether and Bitfinex confirmed in a recently filed affidavit with the Supreme Court of the State of New York, that 74 percent of the USDT reserves, or $2.1 billion, are covered by cash and cash equivalents. This means the stablecoin is not fully backed and the 1:1 ratio with the US dollar has been compromised.
In the light of this news, Bitfinex is about to make a move by issuing an exchange token. This was suggested by Dong Zhao, whale trader and Bitfinex shareholder. If true, it will allow iFinex owners to secure funding and compensate for the $850 million lost to Crypto Capital Corp by following the popular Initial Exchange Offering (IEO) procedure.
Bitcoin closed the trading session on April 28 with a small loss to $5,162, which represented a 2.4 percent decline for the seven-day period.
The new week started with a volatile trading session on April 29. Commentators saw the most popular cryptocurrency trading in the $5,198 to $5,077 zone, still, it did not experience any price changes at the end of the day.
On the last day of the month, the coin formed a solid green candle and gained 2.2 percent climbing back up to $5,270. It was 28 percent up for the month of April.
The Ethereum token dropped to $153 on April 28 and was dangerously close to the important psychological level at $150. It lost 9.4 percent of its value during the previous week as the overall market condition severely impacted the top ten currencies.
The ETH/USD pair broke below $150 during day trading on April 29, still bears were not able to keep the momentum and the session ended at $152. On April 30, observers saw a 5.2 percent increase as the coin moved up to $160.
One of the most popular altcoins grew by 14 percent for the 30-day period.
50,000 DAI coins have been accumulated through donations and will be used to hire an external company, which will evaluate the efficiency of the newly suggested Proof of Work concept for Ethereum.