Bitcoin hits $30k low as Wall Street continues to struggle, but is it bouncing back?
The slide continues across the financial markets this morning, with crypto no exception. The price of Bitcoin came within touching distance of $30k yesterday – the lowest it’s been since July 2021.
The leading cryptocurrency by market cap has since bounced back somewhat, changing hands for around $32k at time of writing. However, it’s still down another four per cent since this time yesterday and 16 per cent since this time last week.
The Ethereum price has fared only slightly better, losing around two per cent over the last day. Other alt coins, however, have fallen by more.
Again, the price of major cryptocurrencies seems to be echoing global stocks, which on Monday suffered their worst one-day decline since the coronavirus pandemic first emerged in 2020. There doesn’t appear to have been any specific catalyst this time, rather analysts are pointing to a growing pessimism about the state of the world’s large economies that appears to be coming to a head. China’s falling export growth and weak manufacturing figures from Germany and France have helped increase talk of recession, coming as they do just as central banks rein in crisis-era stimulus measures and enact interest rate rises.
While things may look bleak, there are also positive signs that the economy could get back on track.
Consumer spending remains high, while the labour market in most major economies is looking in good shape. These sudden declines are nothing new in either crypto or traditional financial markets, but can be understandably scary to newer investors.
Billionaire business magnate Warren Buffett once said “be fearful when others are greedy and greedy when others are fearful”, and there is certainly opportunity when others around you are losing their heads.
Remember though, never invest more than you can afford to lose and exercise caution when investing. Cryptocurrency is a long-term investment and it’s always best to zoom out and look at the big picture before making emotional decisions based on what appears to be the current mood.
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Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/research
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1.463 trillion.
What Bitcoin did yesterday
We closed yesterday, May 9 2022, at a price of $30,296.95. The daily high yesterday was $34,222.07 and the daily low was $30,296.95.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $607.6 billion. To put it into context, the market cap of gold is $11.826 trillion and Tesla is $815.45 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $81.582 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 45.32%.
Fear and Greed Index
Market sentiment today is 10, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.78. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 33.41. 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
“Bitcoin is a remarkable cryptographic achievement, and the ability to create something that is not duplicable in the digital world has enormous value.”
Eric Schmidt, Former CEO of Google
What they said yesterday
The future is bright…
No fear…
Keep calm and carry on HODLing…
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Crypto AM: Features
Crypto AM: Founders Series
Crypto AM: Industry Voices
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowater
Crypto AM: Tomorrow’s Money with Gavin S Brown
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
Crypto AM: Visions of the Future, Past & Present with Alex Lightman
Crypto AM: Tiptoe through the Crypto with Monty Munford
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto on the catwalk
Crypto AM: Events
For those of you who missed the Crypto AM DeFi & Digital Inclusion online summit 2021 – you can now watch the event in two parts via YouTube
Part One
https://www.youtube.com/watch?v=dvqNMNZTIDE
Part Two
https://www.youtube.com/watch?v=WXhX_-Tr5j0
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