Cryptocurrency markets settle down after sell off
Crypto at a glance
Elon Musk continues to dominate the headlines today, although the crypto markets seem to have settled down somewhat after the weekend’s dip.
Bitcoin is still trading at around $45,000 – around the same as this time yesterday. It fell to a low of $42,212 during the Asian hours, a level not seen since February 8, and is now down 35 per cent from the record high of $64,880 set last month. Have things calmed down, or is there more pullback to come?
The alt markets seem to be following in Bitcoin’s footsteps again too, having been largely out of lockstep with the leading cryptocurrency over the last month. Ethereum is also trading sideways at around $3,500, down one per cent on yesterday. XRP is the only real standout performer, up seven per cent over the last 24 hours to $1.56.
It’s important to remember at times like this that corrections are common in the world of investments, especially in Bitcoin. Whenever a market runs too hot as Bitcoin has recently, you can expect it to cool down until an equilibrium between buyers and sellers is met again.
This is also the deepest correction of the current bull market. However, it is consistent with five major pullbacks during the 2017 bull run. It remains to be seen whether the same is true this time around and every instance is of course different, but if history is anything to go by this is not unexpected.
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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 $2,084,770,152,085.
What Bitcoin did yesterday
We closed yesterday, May 17 2021, at a price of $43,537.51, down from $46,456,06 the day before.
The daily high yesterday was $46,623.56 and the daily low was $42,207.29.
This time last year, the price of Bitcoin closed the day at $9,670.74. In 2019, it closed at $7,343.90.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $843.75 billion, up from $836.98 billion yesterday. That puts it below Facebook again. To put it into context, the market cap of gold is $11.882 trillion and Alphabet (Google) is $1.543 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $64,747,766,359, down from $77,936,181,997 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 63.43%.
Fear and Greed Index
Market sentiment today is at 21, down from 27 yesterday .
Bitcoin’s market dominance
Bitcoin’s market dominance today is 40.70, down from 40.76 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 32.49, up from 30.31 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
“In the past few months, Belarusian activists have used bitcoin to defy the regime by sending more than 3 million dollars of unstoppable money directly to striking workers, who then convert it locally to rubles in peer-to-peer marketplaces to feed their families as they protest the country’s dictatorship.”
– Alex Gladstein, the Human Rights Foundation
What they said yesterday
The energy debate continues…
Good news…
Perspective…
Crypto AM Editor writes
Bitcoin gets the jitters as Elon Musk’s curious meddling continues…
Dogecoin inventor takes a swipe at “self absorbed” Musk…
Ethereum yet to take off and is on track for $5,200 soon say experts…
Ethereum punches through $3,000 with market cap bigger than Bank of America…
Ethereum closing in on $3,000 as Bitcoin eases off the throttle…
Cardano teams up with Save the Children for humanitarian initiative….
HMRC were not clamping down on crypto…
Binance jumps on the NFT market…
Ethiopia overhauls its educational system with IOHK blockchain partnership…
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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 08:30am GMT.