The pain is continuing for crypto holders the world over as Bitcoin seems to be leading to a major correction of just about every token currently being traded.
The losses vary depending on the coin involved, but in general we're seeing billions upon billions of market cap evaporate over the last 24 hours. Meme-coin Dogecoin has somehow managed to resist Bitcoin's gravity and continued its rocketing upwards, though there is debate all over the web on whether this is a good or bad thing. While there have been claims that Gamestop-esque rise of DOGE has popped the bubble the cryptocurrency trade has been living in, I'm not convinced we can blame this all on the digital shiba-inu.
To be honest the DeFi market has been running red hot for months now, with WallStBets inspired traders loading up on leverage like I'd load up on brisket at the casino buffet (before Covid, that is). Combine this with the news of Turkey banning crypto payments, rumors of increased U.S. regulations, and traditional stock markets selling off from all time highs and a significant correction for the general crypto market shouldn't come and a huge surprise though the speed at which it happened might.
BTC is still up almost 700% over the past year, ETH is up 4 figures when it comes to gains. As long as this drop doesn't continue for a month or so we should see a quick recovery and push back upwards.
Ampleforth Becoming a Counter Trade to Bitcoin?
At the beginning of month I wrote about Ampleforth giving up it's February gains and wondered about how it might recover. Soon after AMPL did manage to claw it's way back into the lower end of its target range, but the recent crash in BTC seems to have pushed a spike in AMPL in the opposite direction.
Considering how the Ampleforth protocol works its divergence from BTC's chart is understandable and a welcome sight for those who both hold AMPL as well as for the general health of the crypto based economy. For all its benefits, Bitcoin's dominance of the market and the ability to pull almost all other coins up or down is NOT healthy for the future maturity of this ecosystem. AMPL being able to run counter is a good first step, and becoming a hedge against BTC volatility would give it a solid use case and help expand it's adaptation and therefore stability.
The open question is whether other tokens can begin to decouple from BTC and stand on their own, or if Bitcoin will continue to control where the market goes for good or bad.
