Slow bleed out of crypto continues, but can the US central bank deliver positive news?
The slow bleed we’ve seen in the crypto markets accelerated on Friday, with the Bitcoin price dropping below $40k and falling to £35k. It seems to have stabilised for the time being, with the leading cryptocurrency currently down two per cent over the past 24 hours and 18 per cent over the past seven days.
The drop marks Bitcoin’s worst weekly performance in eight months and it’s the lowest the price has been since July. Will the momentum shift this week or is there further to fall?
The price drop appears closely linked to the poor performance across the wider financial markets, particularly for tech stocks. Last week saw the S&P 500 and Nasdaq log their biggest weekly percentage drop since the onset of the pandemic in March 2020, with investors still in limbo ahead of next week’s Fed meeting where the US central bank could give more indication around future interest rate rises.
There was also more specifically negative news in the space, with Russia proposing to outlaw all cryptocurrency operations in the country. Elizaveta Danilova, head of Russia’s central bank’s financial stability department, said: “We consider it very important to ban using Russian financial infrastructure to obtain cryptocurrency. We think this will help remove a significant part of the risks and ensure that cryptocurrency won’t be so popular.”
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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 $1,615,262,801,871.
What Bitcoin did yesterday
We closed yesterday, January 23 2022, at a price of $36,276.80, up from $35,030.25 the day before. The daily high yesterday was $36,433.31 and the daily low was $34,784.97.
This time last year, the price of Bitcoin closed the day at $32,289.38. In 2020, it closed at $8,445.43.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $668.35 billion. To put it into context, the market cap of gold is $11.678 trillion and Tesla is $947.92 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $25,588,267,184. 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 51.6%.
Fear and Greed Index
Market sentiment today is 13, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 40.64. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 24.79. 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
“The purpose of Bitcoin is to send a message that New York City is open to technology”
Mayor of New York City, Eric Adams
What they said yesterday
And don’t you forget it…
This could take a while…
Another one…
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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