Bitcoin slips to three-month low as interest rate rises hit financial markets
The price of Bitcoin (BTC) fell to a three-month low yesterday, dropping below $34k to its lowest level since late January of this year.
The largest cryptocurrency has now seen losses for five straight days. It’s currently changing hands for around $33,600 – down three per over the past 24 hours and 13 per cent since this time last week.
Ethereum (ETH) is also down around three per cent and 13 per cent over the week, with the price of the second-largest cryptocurrency currently sitting at around $2,460.
The crypto market’s declines have again followed traditional markets, which closed down last Friday after tech-heavy Nasdaq tumbled five per cent on Thursday for its worst performance since 2020.
European markets have opened this week in the red, with the pan-European Stoxx 600 down 0.5 per cent and the UK’s FTSE 100 down 0.2 per cent.
The declines follow the US Federal Reserve’s announcement last week that it would raise its main interest rate by half a percentage point for the first time since 2000. It also indicated there may be further rises at meetings in June and July.
Fed chair Jay Powell suggested after the announcement on Wednesday that future raises would be limited, which seemed to provide comfort to investors enough that the markets actually picked up on the news.
Have we reached the bottom for now, or is there farther to fall?
Would you like to help spread the adoption and education of Bitcoin in the UK and even stack some Sats while you’re doing it? Well, now you can!
The Bitcoin Pioneers community, backed by Barry Silbert’s Digital Currency Group, was created to introduce Bitcoin to a mainstream audience in a meaningful way and now has members right across the UK.
We share tips, stories and ideas on how to encourage others to try Bitcoin for the first time. And, thanks to support from Luno, each Pioneer gets £500 of Bitcoin a month to share with beginners, helping them get started.
So, if you’re passionate about Bitcoin, why not join today? Click here to find out more!
All feedback on Crypto AM Daily in association with Luno is welcome via email to [email protected] 🙏🏻
Friday’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 $1.540 trillion.
What Bitcoin did yesterday
We closed yesterday, May 8 2022, at a price of $34,059.26. The daily high yesterday was $35,502.94 and the daily low was $33,878.96.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $640.71 billion. To put it into context, the market cap of gold is $11.88 trillion and Tesla is $896.82 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $37.165 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 35.49%.
Fear and Greed Index
Market sentiment today is 11, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.84. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 33.82. 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 could become the reserve currency of the world.”
Rand Paul, US Senator
What they said yesterday
What do you think?
Which side are you on?
Go green with Bitcoin…
Crypto AM: Editor’s picks
‘Let people invest’: Matt Hancock makes case for liberal crypto rules
Explained: Why the Treasury is so sold on stablecoins
Fears crypto is used to avoid sanctions ‘misplaced,’ says Matt Hancock
Meet the hackers helping people recover lost crypto assets
The cryptocurrency fundraisers behind Ukraine’s military effort
Exclusive: Fireblocks valuation climbs to $8bn in $550m funding round
Crypto crazy couple name baby after favourite digital asset
Bitcoin hashrate touches new all time high
Peter McCormack: Transforming Bedford FC into a global Bitcoin brand
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