Crypto’s past performance is not indicative of future results – bring on 2023!
The week year in review
with Jason Deane
Welcome to 2023!
As usual, we’re full of optimism of the new opportunities that lie ahead in a new year, but, if we’re not careful, we can get bogged down very quickly in the day-to-day nitty gritty and find ourselves losing that enthusiasm very quickly.
And, of course, if you dwell too long on the recent past, that’s quite easy to do.
Think about it. 2019 was probably the last “relatively normal” year for the planet as a whole. Covid had yet to wreak untold damage on human health via the infection itself and, some argue, via the rushed vaccination solution that followed, followed by the decimation of the global economy and financial system. Then, we had the first major war in Europe for 77 years – a war that continues today – which has disrupted supply lines across the plant and placed Russia in pariah status for at least a couple of generations.
Meanwhile, crypto overheated and then crashed in spectacular fashion when it was revealed that certain organisations and people had been exploiting the unregulated status of the industry to create vast fortunes which were then lost when the music stopped. Sam Bankman-Fried’s FTX case, of course, is the most widely followed, by just this morning Alex Machinsky of Celsius was served a civil suit by the New York Attorney General in what will surely not be the last of his legal issues.
Recently, driven by events rather than actual evidence of wrongdoing, Binance has also come under the microscope and the impact of a failure here is something I discussed with Tech Monitor in this article recently.
Meanwhile, the crypto markets remain flat, uninspired and lost in a wilderness without apparent end. I suspect that many projects will become zombie coins forever as a result and begin their inevitable decline down the Coin Market Cap table to the nth page of total obscurity.
There’s a classic disclaimer we like to use in the finance industry and that we’re all familiar with – past performance is no guarantee of future results – but surely this innocuous catch-all can apply both ways, right?
Recently, and quietly, we’ve seen Bitcoin adoption increasingly grow at a sovereign level. Fiji’s new pro-Bitcoin Prime Minister brings the possibility of a second Pacific nation adopting the currency, after Tonga’s planned adoption this year. Other countries, such as Brazil, continue their strides towards making it easier and clearer to use on a day to day basis. Hotspots such as Laguno, Madeira, Isle of Man and many others are attracting attention, but even in other countries where regulation is less clear, or isn’t even crypto friendly, momentum is building as can be seen from this report.
Bitcoin adoption is, in my view, inevitable and this is something I discussed in detail with Dinny Collins on his YouTube channel just before Christmas, worth a watch.
So whatever we’ve been through over the last few years, especially 2022 in terms of crypto, let’s remember that past performance is not indicative of future results.
So let’s get out there and make 2023 the year that makes the difference!
Have a great weekend!
Want to learn more about what’s going on in our global financial system and how Bitcoin fits in to it? Come to my next free webinar on January 18th at 6pm to find out, ask any questions, and grab some free Bitcoin*. Click here to register. (*18+, UK resident, new Luno users only)
Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Data can be found at https://terminal.bytetree.com/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $814,437 billion.
What Bitcoin did yesterday
We closed yesterday, January 5, at a price of $16,836.74. The daily high yesterday was $16,884.02, and the daily low was $16,790.28.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $323.32 billion. To put it into context, the market cap of gold is $12.137 trillion and Tesla is $397.03 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $13.79 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 23.-2%.
Fear and Greed Index
Market sentiment today is 26, in Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.76. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 38.65. 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
“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.”
— Leon Luow, Nobel Peace prize nominee
What they said yesterday
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] 🙏🏻
Crypto AM: Editor’s picks
Sam Bankman-Fried: A tissue of lies soaked with fake tears?
Three-in-four wealth managers are gearing up for more cryptocurrency exposure
Crypto.com granted FCA licence to operate in UK
Q&A with Duncan Coutts, Principal Technical Architect at IO Global
Jamie Bartlett – on the trail of the missing ‘Cryptoqueen’
MPs are falling silent over potential of cryptocurrency
Erica’s ‘Crypto Wars’ handed honours in Business Book Awards
‘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
The cryptocurrency fundraisers behind Ukraine’s military effort
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