The cryptocurrency market continues to weather bad news. Its value plunged by more than 9% overnight, after the US government revealed it had recovered $2.3 million in bitcoin paid out following the Colonial Pipeline ransomeware attack. (It’s likely that the FBI obtained the private key for the address from which it recovered the BTC.)
Bitcoin (BTC) and ethereum (ETH) fell by close to 10%, while certain smaller altcoins have dropped by nearly 15%. But even though the news adds more fuel to the bearish fire currently burning in crypto, a dip always offers an opportunity to buy cheap. That’s why we’re considering which cryptocurrency will explode once the market recovers.
Top of the list is bitcoin (BTC). It has led today’s market-wide fall, which puts it in a position to lead the recovery. Data also indicates that hoarding behaviour among long-term holders is setting it up for a strong future surge. However, Binance coin (BNB) and iota (MIOTA) are also worth highlighting, since their larger drops potentially line them up for larger recoveries.
Which Cryptocurrency Will Explode June 2021 Week 2?
1. Buy Bitcoin (BTC)
Bitcoin has been the bringer of bad news today, pulling down the entire market. That said, the market’s obvious correlation with bitcoin indicates that it won’t jump up again without BTC leading the charge. This is why bitcoin is a relatively safe bet: if any coins rise, it won’t be without BTC rising first.
Still, the current price data doesn’t look too great. Bitcoin is down by nearly 10%, as of writing. It started the 24-hour period at $36,232 and it currently teeters on $32,755. It is also down by 15% over the past fortnight and 44% over the past month. However, it remains up — by 236% — across the past year. At the same time, the recent dips highlight how it could be primed to make a significant recovery.
Supporting the suspicion of an eventual strong recovery is on-chain data. Posting to Twitter, glassnode co-founders Yann Allemann and Jan Happel noted that the circulating supply of bitcoin has been steadily declining in recent days and weeks.
@glassnode charts paint a thousand words #Bitcoinhttps://t.co/OlsAMzBI8q pic.twitter.com/IYukAnEG5b
— Yann & Jan (@Negentropic_) June 7, 2021
They also observed that long-term holders are accumulating increasing quantities of bitcoin.
More #Bitcoin supply moving from the impatient to the patient.https://t.co/VgAybQCl0N pic.twitter.com/wc4Gg79aAZ
— Yann & Jan (@Negentropic_) June 4, 2021
Basically, this suggests that long-term holders are creating a supply squeeze, buying up bitcoin at a discount as it falls. The eventual result of this could be that bitcoin jumps back with defiance at some point in the coming months. As such, it may be worth buying up gradually using a dollar or pound (or whatever else) cost-averaging approach.
2. Binance coin (BNB)
Binance coin (BNB) is arguably another cryptocurrency which will explode as the market recovers. This is largely because of the privileged place it occupies within the Binance ecosystem. Given that it offers discounts at Binance and also powers the growing Binance Smart Chain, it’s likely to be a relative safe haven compared to other coins.
At the same time, it has fallen by just over 11% in the past 24 hours. This may seem bad, but BNB has been fairly stable over the past week and the past fortnight. It’s also 1,919% up compared to its price a year ago. This combination of a short-term dive with long-term stability and growth suggests that it could be one of the strongest recoverers.
Binance Smart Chain continues to attract new platforms and applications. For example, PumaPay recently moved to BSC from Ethereum, which continues to grapple with higher-than-average fees. It has also accommodated recent launches from Kesef Finance and Yieldly, to name only two.
It therefore continues to grow. And with it, we should expect BNB to grow as the wider cryptocurrency market recovers.
3. Buy Iota (MIOTA)
Iota (MIOTA) is another cryptocurrency which has fallen quite heavily in the past 24 hours. It dived by just over 14% in the past day, from $1.29 to $1.10. Despite this, it’s likely to be another strong performer as the market picks up.
Its medium-term performance is comparatively good. Its price is basically unchanged compared to a week ago (BTC is down by nearly 12%). Over the past fortnight, it has actually risen by 4%, while BTC has slid by nearly 15%. It’s also up by 350% over the past year, outperforming BTC yet again.
As a platform (providing a blockchain for the Internet of Things), Iota remains highly promising. It recently launched the developer network for Iota 2.0, which will decentralise its network by removing the need for a central coordinator. And as the only major blockchain for the IoT, it may eventually take off once smart technologies become more widespread. In this respect, it’s worth noting that it opened the year by announcing a partnership aimed at spearheading smart cities in South Korea and South East Asia.
And given that it remains one of the few cryptocurrencies that hasn’t passed its 2017 ATH during the 2021 bull market, it could be another cryptocurrency which will explode once the market recovers.
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