Bitcoin rises to $50k again as Wall Street drops amid inflation fears
It seems that a rising correlation between Bitcoin and traditional markets in recent weeks was a temporary blip, with Wall Street falling just as Bitcoin again surges above $50k.
The leading cryptocurrency is currently trading at around $50,200, up almost six per cent over the past 24 hours. The Dow Jones industrial average, meanwhile, was down almost one per cent, and the technology-focused Nasdaq Composite down 2.1 per cent amid fears that rising inflation will lead to higher interest rates.
A key driver behind the rally, according to analysts, is a growing expectation that the US Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded product (ETF). Last Wednesday, SEC Chairman Gary Gensler reiterated his support for a narrow class of Bitcoin ETFs that would invest in futures contracts instead of the cryptocurrency itself.
The move would allow retail investors to include the asset easily in their brokerage accounts, which could spark a fresh rally for institutional adoption.
It’s a similar story across the cryptocurrency markets today, with the likes of Ethereum and XRP all rising around two percent since yesterday morning. Dogecoin is out in front, up 11 per cent, but for the first time in a while, Bitcoin is surging ahead of the pack. The leading cryptocurrency is still struggling for market dominance though, continuing to hover at around 42 per cent, which is way below highs of 70 per cent at the turn of the year. Can it re-establish its authority?
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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/insights/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $2,117,270,719,258.§
What Bitcoin did yesterday
We closed yesterday, October 4 2021, at a price of $49,112.90, up from $48,199.95 the day before. The daily high yesterday was $49,456.78 and the daily low was $47,045.00.
This time last year, the price of Bitcoin closed the day at $10,793.34. In 2019, it closed at $8,151.50.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $930.06 billion. To put it into context, the market cap of gold is $11.156 trillion and Facebook is $919.78 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $33,219,748,521, up from $25,876,688,380 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 62.53%.
Fear and Greed Index
Market sentiment today is 59, back in Greed.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.75, up from 42.37 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 61.52, up from 57.95 yesterday. 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
“The most difficult aspect of Bitcoin to grasp is that it’s completely unique — nothing like it has ever existed. There’s nothing for the media to compare it to, and they’re unable to fully understand the magnitude of the coming paradigm shift that Bitcoin will bring.”
Samson Mow, chief strategy officer of Blockstream
What they said yesterday
Bitcoin was last down 3,130 days ago…
Reliable much…
Deep…
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