Ethereum volatility increases as FUD continues to pour in
Crypto at a glance
It was another turbulent day in the markets, as the Bitcoin price continues to bounce up and down like a skittle on a snare drum. The leading cryptocurrency dropped to a low of $35,000 before recovering to above the $42,000 line.
It’s currently trading at around the $40,000 level, with the price again unchanged over the last 24 hours despite the volatility. What does this weekend hold in store?
The volatility comes as FUD continues to pour in from anti-Bitcoiners apparently sensing an opportunity. Yesterday’s dose comes to you courtesy of the US Treasury report, who called for businesses that receive transfers of more than $10,000 in cryptocurrencies to report them to the Internal Revenue Service (IRS). They’re meeting stiff resistance at the moment, with the price holding strong.
Private equity giant David Rubenstein also yesterday came out in favour of Bitcoin, claiming there was little the government could do to stop it. Who’ll tire first? A plague of cyber hornets or fax machine-loving Paul Krugman?
The IRS announcement coincided with a price drop across the board, with Ethereum falling five per cent on the news. The alt markets continue to look more volatile than Bitcoin. Bitcoin’s 30-day volatility is currently more than 90 per cent for the first time since March, while Ethereum’s is roughly 120 per cent. It’s currently changing hands for around $2,700 though, the same as yesterday. Indeed, only XRP and MATIC are down today, having looked like they’d weathered the storm relatively well. They’re down five per cent and seven per cent respectively.
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,742,810,292,092, down from $1,760,410,472,285 yesterday.
What Bitcoin did yesterday
We closed yesterday, May 20 2021, at a price of $40,782.74, up from $37,002.44,the day before.
The daily high yesterday was $42,462.98 and the daily low was $35,050.62.
This time last year, the price of bitcoin closed the day at $9,522.98. In 2019, it closed at $7,978.31.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $744.19 billion, down from $761.42 billion yesterday. To put it into context, the market cap of gold is $11.905 trillion and Tesla is $565.25 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $73,531,307,634, up from $133,033,444,219 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 90.28%.
Fear and Greed Index
Market sentiment today is at 19, up from 11 yesterday.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 43.46, down from 43.93 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 30.70, down from 32.08 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
“Crypto has come from nowhere to be a force in the market … it’s here to stay. Cryptocurrency is not going away. The idea that the government is going to stop cryptocurrency from being something investors want is unrealistic.”
– David Rubenstein, co-founder and Co-Chairman of the Board @ The Carlyle Group
What they said yesterday
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Crypto AM Editor writes
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Crypto AM: Longer Reads
Morning Wire Markets: What is Decentralised Finance (DeFi) by Aave…
Crypto AM: Conversation with James Bowater
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Crypto AM: Technically Speaking
Crypto AM: A Trader’s View with TMG
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
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Crypto AM: Spotlight
Crypto AM: Founders Series
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Crypto AM: Tiptoe through the Crypto with Monty Munford
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Crypto AM Parliamentary Special
Part one of two – April 2021
Part two of two – April 2021
Five part series – March 2021
Part one…
Part two…
Part three…
Part four…
Part five…
Crypto AM: Recommended Events
AIBC World
May 25 to 26 2021 – Dubai
https://aibc.world/events/uae/general-info/
Bitcoin 2021
June 3 to 5 2021 – Miami
Crypto AM Canada Roundtable
Crypto AM DeFi & Digital Inclusion Summit
&
Crypto AM Awards 2021
September 29 to 30 2021
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.