Bitcoin echoes gold as US economy strengthens
The Bitcoin price again dipped below $56,000 yesterday, as its pullback from recent all-time highs continues. Can it hold at this level or is there further to fall?
The markets generally were looking broadly positive yesterday, with US President Joe Biden’s announcement that he will renominate Federal Reserve Chairman Jerome Powell temporarily boosting equities and cryptocurrencies alike.
However, Bitcoin’s rally didn’t last long. It’s currently changing hands for just above $56k, down two per cent over the past 24 hours.
There is a school of thought that the current pullback in cryptocurrencies is a natural part of the cycle after a strong rally over the past month, as investors take profits.
The pullback has also echoed a similar drop for gold, which has also now fallen in each of its last three consecutive sessions after a strong start to November. Global concerns around rising inflation were credited with the yellow metal’s rise in value during the early days of the month, but with the US economy performing well and the consumer in a strong position it appears that gold has lost some of its appeal.
Is this further evidence that Bitcoin’s price movements are more closely aligning with gold as an inflation hedge?
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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 $2,569,791,125,299.
What Bitcoin did yesterday
We closed yesterday, November 21 2021, at a price of $56,289.29, down from $58,730.48 the day before. The daily high yesterday was $59,266.36 and the daily low was $55,679.84.
This time last year, the price of Bitcoin closed the day at $18,364.12. In 2019, it closed at $7,397.80.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1.082 trillion. To put it into context, the market cap of gold is $11.462 trillion and Tesla is $1.064 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $2,554,266,834,102, up from $29,267,584,920 yesterday. 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 43.84%.
Fear and Greed Index
Market sentiment today is 33, in Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.57. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 40.24. 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.
Convince your Nan: Soundbite of the day
“This is not a fad. We should tread cautiously, but not fearfully. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”
Jane Hume, Australia’s financial services minister
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