Lunar Eclipse Event on May 5th: Will Bitcoin & Crypto Crash?
Also, Can PEPE Sustain Its Bull Run? and Hedera HBAR's Potential for Growth
This week has been a waiting game for Bitcoin to make a big move, either breaking up or down. The psychological resistance of $30,000 has yet to be broken through and the price maintained above. However, It will definitely happen, but there may need to be a retracement before it happens, and I have more info below on why that may need to happen first. Until Bitcoin breaks the descending green line in the chart it’s looking short-term bearish, despite the latest signal being a buy signal.
One thing to remember with Bitcoin is the market can go up slow and sometimes fast, but when it goes down it usually goes down very fast, with drastic drops. Preserving your capital and managing risk is an important aspect of investing & trading.
Lunar Eclipse market crash May 5th?
In my discussion with Maren Altmen, an astrologist and TikTok influencer from a few months back, she made some good points about upcoming lunar and solar events on May 5th that could affect the markets.
While it may only be superstition that a lunar event could move the market, given her track record of predicting the rise and crash of Bitcoin to the day in 2021 based on astrology, I wouldn't completely disregard the information.
On May 5th, there will be what's known as a blood moon Lunar Eclipse, which may or may not affect the markets. The general consensus from moon cycles is that the market tends to crash on full moons and recover or pump on new moons. When there is an eclipse, that effect is multiplied.
Bitcoin has been teetering on the edge of 28k for a few weeks, and some major traders have been calling for a retracement to 24-25k for that same amount of time. There are a few days left until May 5th, and I have a feeling that it's time for one of those -10% or more days in the market. Especially after what has happened the PEPE and the memecoins. Normally when memecoins and gambling money is the only money moving around in the space, there is a retracement or crypto crash soon after.
In the last episode, I mentioned PEPE, how it's backed by nothing, and buying the coin is not investing; it's gambling.
Well, there are a lot of gamblers in crypto too, and similar to blackjack or roulette, you can sometimes get lucky and double your money three or four times. But if you never cash out and take realized profits, 99% of the time, the house will win and take it all back.
But there's also that small percent chance it's a total anomaly and becomes the next DOGE and SHIB that doesn't really have internal value but sticks around at a high valuation from adoption. Could PEPE be that exception?
While I didn't purchase any myself, I have some degenerate friends that enjoy gambling, and they bought some PEPE, which paid off for them. The PEPE craze took off after the last letter, and the coin itself is up from almost nothing (being created two weeks ago) to over $500M market cap at one point, a 500% return since last week and a 1000x for the few who bought it in the first days of creation.
While it's done well for people who gambled on it early, it's caused a wave of FOMO (Fear of Missing Out) for new traders who see the small number of people who made huge gains from it. They try to get into the next coin in a high-risk play to try and make as much. Meanwhile, people are shilling new useless coins that were just created, and it's likely you will lose money on these due to exit scams, pump and dumps, or high volatility.
This is not good for the space and for Web3 as a whole in building a solid foundation and reputation for the advancement of the actual technology that does work. People hear about blockchain for the first time through a frog meme and a few gambling people getting rich. We need to focus on the real technology that will change the world. So let's take a moment to return to the long-term perspective on Layer 1 blockchains below.
This week, I'm focusing on an underrated Layer 1 network - the Hedera blockchain, which has just confirmed 8 billion transactions over the network.
Hedera is governed by a council consisting of major companies such as Google, IBM, LG, Boeing, and more. Based on the recent major increase in trading volume, it's possible that something big is coming, which may include new large companies being added to the Governing Council.
Hedera also considers itself to be the greenest blockchain in the industry, although this claim is debatable. According to them, each transaction only uses 0.000003 kWh of energy, which is 200 times less than the Solana blockchain and 970 million times less than Bitcoin.
One of the reasons I'm excited about Hedera is that it has great traction, partners in the council, network usage, and adoption, while still having a relatively small market cap compared to other Layer 1 chains. The current market cap is $1.8 billion, making it the 34th largest project in the industry. While this is not tiny, it's significantly smaller than blockchains like Solana or Polygon, which currently have a market cap of $8-9 billion.
The interview I conducted with the CEO of Hedera, Leemon Baird, two months ago was a major milestone as the network had been adding more enterprise and corporate partners and had just surpassed 4 billion transactions. In just a couple of months, they have now doubled the amount of transactions processed, and the growth is becoming exponential.
Although the price hasn't exactly reflected this growth just yet, the trading volume grew over 700% this week before calming back down. Are investors picking up the project before something big is about to happen?
For those interested in learning more about the ecosystem and getting involved, I'd recommend digging into my latest discussion with the company that's creating the first hardware wallet specifically designed for the Hedera blockchain. It will store Hedera's HBAR, Hedera-based NFTs, and Hedera tokens like $CLXY Calaxy and more that are coming out.
Speaking of NFTs, you can pre-order this hardware wallet by purchasing the Guards of the Citadel NFT collection. The NFT also doubles as an order for the hardware wallet when it is released, likely in Q4 of this year.
With the market cap of Hedera right now being 7 or 8 times smaller when compared to some of these other Ethereum competitors, there is lots of room for growth, and I think it could come soon.
Other Crypto News:
Mastercard partners with Polygon, Solana, Ava and others to launch Crypto Credential system
White House proposes 30% tax on electricity used for Bitcoin and crypto mining.
Florida governor vows to ban CBDCs in the state and says the government doesn't like crypto because it can't be controlled.
China plans to create a $58 billion railway system connecting Pakistan and China to reduce Western trade dependence and dependence on the US dollar
7,800 jobs at IBM could be replaced by AI within years
JP Morgan buys First Republic Bank after the stock goes to almost nothing
PacWest Bancorp #PACW stock trading halted, citing volatility after dropping 30% today.
That’s all I have for this week. Stay tuned for more in next weeks episode!
Ashton Addison
CEO, Crypto Coin Show
Lunar Eclipse Event on May 5th: Will Bitcoin & Crypto Crash?
I'd be good with a full moon dump & recovery!