No victory for bull nor bear as Bitcoin dishes up more sideways movement
The week in Review
With Jason Deane
This week’s mantra is “more of the same”.
Bitcoin’s price – the indicator that everyone focuses on the most – is still entirely directionless and remains incapable of making a move either way. Neither the bears nor the bulls can claim any sort of victory and my Twitter feed is full of analysts trying to make a case for either side in equal numbers.
Of course, for long term investors and macro thinkers like myself, this is all entirely irrelevant. It’s more of a sideshow to observe while we munch on popcorn and quietly stack Sats.
It’s easy to forget how incredibly early we are to this whole thing. When the first big pushes to get people involved with the internet first started in the mid-nineties – something I was personally involved in for some years – we went through all the same “forming, storming, norming” questions we’re having now:
What are the risks?
Is it too complicated for people to use?
Who regulates it?
What do you do about copyright issues?
Will terror organisations use it to communicate?
Is it safe? Can someone delete my stuff?
What is it actually for?
Why would I ever need to use it when I already have letters/telephones/shops?
… and so on.
I remember people being urged not to use their credit card online for fear of the details being stolen and, the press smugly claiming people “were logging out of the internet by the millions” and, of course, Nobel-winning economist Paul Krugman’s famous 1999 quote: “… [by 2005]… it will become clear that the Internet’s effect on the economy is no greater than the fax machines.”
To be fair, using the internet in those days wasn’t for the faint hearted. It was messy, slow, fragmented and had a poor user interface, to name just a few problems. And, since its use was entirely optional for day-to-day life at that point, it was initially supported by a few million passionate advocates who spent their time pointing out how useful it would be… and often taking criticism for doing so.
That narrative is where we are now with Bitcoin. The background chatter hides the development that continues at an exponential rate, although it all seems invisible if you’re not directly involved with it.
The noise is price, regulations, central banks asking for bans, the IMF sulking about El Salvador and rejected ETFs, but in the end, it’s all just a distraction.
After all, we already know how the global adoption of an open source system ends.
So, if you’ll excuse me, I’m going to grab another tub of popcorn.
Have a great weekend!
Jason
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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 $1,680,842,654,216, up from $1,621,776,238,303 yesterday.
What Bitcoin did yesterday
We closed yesterday, January 27 2022, at a price of $37,138.23, up from $36,852.12 the day before. The daily high yesterday was $37,148.32 and the daily low was $35,629.28.
This time last year, the price of Bitcoin closed the day at $27,084.81. In 2020, it closed at $9,358.59.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $703.99 billion. To put it into context, the market cap of gold is $11.409 trillion and Tesla is $832.63 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $24,934,515,147, down from $32,418,712,132 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 54.02%.
Fear and Greed Index
Market sentiment today is 24, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.83. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 33.05. 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 mining is promoting innovation and creating jobs.”
Texas congressman, Pete Sessions
What they said yesterday
Saylor getting poetic…
Brisket and Bitcoin…
It’s not just members of congress in the US…
Crypto AM: Editor’s picks
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
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
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