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Bitcoin Changes Everything - Chung's Weekly Digest (5/8)

Bitcoin can be likened to the internet in its early days, it revolutionizes every sector.

Early Internet 

Bitcoin ($BTC) failed to stay above $40k and capitulated to a 24-hour low of $34,413. Bitcoin is about to chart a 6th consecutive red weekly candle which last took place in May 2014. 


Despite institution support and increased adoption, Bitcoin is finding it hard to sustain its price as fears continue to loom as fear of rising inflation continues to grip the equity market. The next Consumer Price Index (CPI) is scheduled to be released on May 11. 

The US Federal Reserve (Fed) will have to increase the interest rate if the CPI reading is unfavorable. According to Google Trends, the volume of searches for Bitcoin has waned, an indication of the overall retail sentiment. 

Source: Google Trends shows that the term ‘Bitcoin’ is becoming less popular as the search volume has decreased significantly 

Popular podcaster, Joe Rogan, recently spoke about Bitcoin in his conversation with Khalil Rountree and he said:

“I think of Bitcoin the same way I think of the early internet. They [the government] didn’t see it coming and now it’s a viable form of currency–you can actually buy things with it.”

The common perception about Bitcoin and blockchain technology is changing fast. Bitcoin is no longer seen as a get-rich-quick scheme as it gains mainstream adoption. Retail investors might be less enthusiastic about Bitcoin as an investment that is capable of providing manifold returns. 

Source: The lightning network is a decentralized second-layer scaling solution built on top of the Bitcoin network 

The Bitcoin network has real-world utility today. It can be used to facilitate payment in a fast and secure manner. Institutions are snapping up Bitcoins on exchanges because it is an inflation hedge and it is becoming a recognized class of asset. 

Weekly Recap

Market Sentiment


The market sentiment continues to sink as it heads to a sixth consecutive weekly red candle. The crypto market appears to be under heaving selling pressure as retail investors abandon the market before the CPI announcement due on Wednesday, May 11. 

The current dump is likely caused by an illiquid weekend market and a relief rally is likely to take place. If the price of Bitcoin bounces, it will form a double-bottom which is a strong reversal signal. 


The crypto market is unsuitable for trading. However, investors that are making spot purchases are not exposed to risks of liquidation. The best strategy to adopt at the moment is to focus on blue-chip crypto assets that are massively discounted or to adopt the dollar-costs-averaging (DCA) method. 

 Coins to Watch

  • Bitcoin ($BTC) - Bitcoin is the safest bet in an uncertain market that is not showing a clear indication of recovery. 
  • Bitcoin remains the least volatile crypto asset that an investor can invest in at the moment. 
  • Altcoins will continue to suffer more losses compared to Bitcoin as the market continues to trend downwards. 
  • Ethereum ($ETH) -  Ethereum remains the top crypto platform that is smart contract enabled. It has the largest community of developers building on its ecosystem. 
Source: The 2017 scenario may play out leading to a massive bull run for Ethereum if the global macro economy improves 
  • Ethereum will be relying on its layer-2 solutions for scalability which is its main concern at the moment. 
  • Unlike other smart contract platforms, Ethereum has a track record and the first-mover advantage over its competitors. 

Come back next week for another iteration of Weekly Digest: Chung's Picks of the Week from BSC News. Be sure to follow Chung Yee on Twitter.

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