Bitcoin and Ethereum blown into choppy waters by interest rate storm
The crypto markets are looking choppier today after a solid start to the week, with most major cryptocurrencies in the red this morning. The Bitcoin price is down 2.53 per cent at time of writing to $45,463, while Ethereum is down 4.3 per cent to $3,368.
The drops follow a number of statements around interest rates yesterday, pushing forward the spectre of further and deeper rises in the near future. US Federal Reserve Governor Lael Brainard said curbing inflation was ‘paramount’, noting that this would be achieved “through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting”.
Agustín Carstens, head of the Basel-based Bank for International Settlements – which is known as the central bank of central banks – added to the fire, noting there was a strong risk prices would rise uncontrollably if interest rates remained at current levels. Analysts have speculated that the prospect of higher interest rates have been one of the primary drivers of the market this year, offering retail investors somewhere low risk to get better returns. Are they right?
Stock markets certainly also felt the pinch, suggesting that crypto and traditional markets are still tightly aligned as has been the case recently. S&P 500 ended 1.26 per cent lower on Tuesday, while the technology-heavy Nasdaq dropped 2.26 per cent.
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Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $2.096 trillion, down from $2.166 trillion yesterday.
What Bitcoin did yesterday
We closed yesterday, April 5 2022, at a price of $45,555.991, down from $46,622.67 the day before. The daily high yesterday was $47,106.14 and the daily low was $45,544.81.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $863.29 billion. To put it into context, the market cap of gold is $12.217 trillion and Tesla is $1.127 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $34.630, billion, up from $30.962 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of Bitcoin over the last 30 days is 37.37%.
Fear and Greed Index
Market sentiment today is 48, in Neutral.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.80. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 58.28. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
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Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Morning Wire, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:00 BST