Don’t fret about stagnant Bitcoin – at least it’s not fiat!
The week in review
With Jason Deane
It does seem, once again, that I find myself writing about crypto markets using terms like “lack of direction” and “lacklustre” – especially where Bitcoin is concerned. We still find ourselves stubbornly in the same range, even a little lower than of late, which totally belies some of the incredible activity that is going on behind the scenes.
Since I’ve written about this previously there’s no need to talk about it again, but what is perhaps more surprising is that while all of this positive development is going on, the macroeconomic situation is getting much worse far more quickly than perhaps even the most ardent Bitcoiners may have expected.
In the last few weeks alone we have seen real evidence of just how much pressure our global fiat currency system is now under.
First, there is the constant devaluation. The US has now reached 6.2 per cent inflation with the UK at 5.1 per cent. The Eurozone as a whole fared a little better at “only” 4.9 per cent, but even within this group there were a few notable outliers – Germany at six per cent, Belgium at 7.1 per cent, and Lithuania at nine per cent. Turkey, of course, is currently sitting at more than 20 per cent and normal life has long since vanished for the people who live there.
How quickly we have got used to normalising these enormous numbers and how little most of us really understand what that means. The bottom line is that, if you didn’t get a 5.1 per cent pay rise this year, you’re going backwards in your ability to spend and save.
Meanwhile, in what has become a comical and utterly meaningless process, the US approved raising the debt ceiling by another $2.5 TRILLION to an impossible-to-repay $31.4 trillion to avoid defaulting on its debt. In other words, paying a Visa bill with a Mastercard – something most of us would consider as not really solving the problem.
Here in the UK, The bank of England raised its rates for the first time in 20 months to 0.25 per cent in a rather futile attempt to try and stem the continuing devaluation via growing inflation that it expects, incidentally, to hit “over six per cent” next year.
What a mess. We are very much in uncharted territory and the risks of holding fiat are growing daily. Whatever happens from here, the financial landscape is going to be very different in the next few years.
But my point is this: next time you feel a little a little frustrated that Bitcoin is staying the same range for a few weeks, just remember it could be worse… you could have your money in fiat losing value by the minute
And that’s guaranteed.
Have a great weekend!
JD
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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 $2,184,245,402,905, down from $2,254,364,650,064 yesterday.
What Bitcoin did yesterday
We closed yesterday, December 16 2021, at a price of $47,665.43, down from $48,896.72 the day before. The daily high yesterday was $49,425.57 and the daily low was $47,529.88.
This time last year, the price of Bitcoin closed the day at $22,805.16. In 2019, it closed at $6,640.52.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $887.68 billion. To put it into context, the market cap of gold is $11.49 trillion and Tesla is $930.86 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was
$27,532,279,094, down from $36,312,534,194 the day before. 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 57.78%.
Fear and Greed Index
Market sentiment today is 23, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 40.87. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 36.20. 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 the younger generation’s gold.”
Billionaire Ray Dalio
What they said yesterday
South Park on crypto…
Block by block…
Tick tock!
Crypto AM: Editor’s picks
Exclusive: FTSE plots development of digital asset index in crypto push
Crypto could give London a unique post-Brexit advantage, says Hammond
Diamond claws: Crypto trading hamster dies after standout investing career
New cryptocurrency named ‘JRR Token’ blocked by lawyers for Lord of the Rings creator Tolkien
El Salvador to build Bitcoin city at base of volcano
Bitcoin’s long-awaited Taproot upgrade has arrived
NFTs set to fund new cryptocurrency movie
Crypto AM: Features
Crypto AM: Spotlighthttps://morningwire.eu/bumper-set-to-fire-up-its-liquidity-provision-program-today/embed/
Crypto AM: Founders Series https://morningwire.eu/using-blockchain-to-overcome-the-challenge-of-universal-connectivity/embed/
Crypto AM: Industry Voices https://morningwire.eu/the-unforeseen-reputational-risks-of-nfts-and-how-to-avoid-them/embed/
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowaterhttps://morningwire.eu/creating-a-future-of-access-to-financial-tools-for-everyone-with-meld/embed/
Crypto AM: Tomorrow’s Money with Gavin S Brownhttps://morningwire.eu/will-tesla-change-direction-on-bitcoin-again/embed/
Crypto AM: Mixing in the Metaverse with Dr Chris Kacherhttps://morningwire.eu/the-metaverse-is-here-and-even-facebook-is-getting-on-board/embed/
Crypto AM: Visions of the Future, Past & Present with Alex Lightman https://morningwire.eu/e-naira-digitising-nigeria-improving-lives-and-advancing-national-infrastructure/embed/
Crypto AM: Tiptoe through the Crypto with Monty Munford https://morningwire.eu/ive-spotted-curious-similarities-between-bitcoin-and-the-taliban/embed/
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto AM: Parliamentary Special
Part one of two – April 2021https://morningwire.eu/the-government-is-cautious-about-crypto-but-i-think-well-get-there/embed/
Part two of two – April 2021https://morningwire.eu/opening-our-eyes-to-financial-inclusion-for-the-good-of-the-economy/embed/
Five-part series – March 2021
Day one…https://morningwire.eu/financial-services-bill-time-to-act/embed/
Day two…https://morningwire.eu/financial-institutions-should-consider-appointing-ai-officers/embed/
Day three…https://morningwire.eu/dlt-may-not-be-the-silver-bullet-but-its-worth-a-shot/embed/
Day four…https://morningwire.eu/theres-a-real-prize-for-the-uk-to-lead-when-it-comes-to-distributed-digital-id/embed/
Day five…https://morningwire.eu/we-need-to-strap-a-rocket-to-the-governments-fintech-thinking/embed/
Crypto AM: Events
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