Thiel warns on China as markets trade sideways
Crypto at a glance
The crypto markets took another hit yesterday, but continue to look strong and the total market cap remains over $1.9 trillion. Will it now continue to drift downwards after the weekend’s gains, or can bulls regain the initiative?
The Bitcoin price is down slightly for a second day running, though it’s still trading in the corridor between $56k and $60k, where it’s struggling to break through. It’s currently sitting at just over $57,000. Resistance is currently looking strong at $60k, but equally support is also strong at $55k. What will it take for a big move in one direction or the other?
It was a similar story elsewhere. Ethereum yesterday shed more than seven per cent of its price to a low of $1,945.44, erasing a week’s worth of gains and sending it under $2,000 for the first time since April 3. It’s since recovered that level and is again changing hands at over $2,000. Can it hold?
There is a sea of red across the boards today, though losses are largely in the low percentages and a tiny dent in recent gains. This is particularly impressive given the deluge of FUD from mainstream media so far this week, primarily surrounding China and regulation.
Much of this was the usual combination of misinformation and speculation surrounding its environmental impact in China, as well as calls from the likes of JP Morgan CEO Jamie Dimon calling for increased speculation.
More interestingly, there was also tech entrepreneur and self-proclaimed Libertarian and Bitcoin maximalist Peter Thiel, who yesterday suggested Bitcoin should be treated as a ‘Chinese financial weapon’ and subject to stricter US scrutiny.
The comment has largely been taken as a suggestion that the US government should get more involved with crypto and use it themselves. Will they heed his warning?
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,929,987,559,189, down from $1,957,412,306,515 yesterday.
What Bitcoin did yesterday
We closed yesterday, April 7 2021, at a price of $56,048.94 – down from $58,192.36 the day before.
The daily high yesterday was $58,731.14 and the daily low was $55,604.02.
This time last year, the price of Bitcoin closed the day at $7,176.41. In 2019, it closed at $5,198.90.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is $1.065 trillion at time of writing, down from $1.080 trillion yesterday. To put that into context, the market cap of gold is $11.074 trillion and silver is $1.386 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $72,681,346,978, up from $69,942,635,501yesterday. 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 49.53%.
Fear and Greed Index
Market sentiment remains in Greed at 73.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 56.81. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 53.61. 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 mobile wallet’s coming to everybody on the planet whether we like it or not. And if it doesn’t sit on Bitcoin controlled and owned by American investors and American companies running on American technology, spreading American values, spreading the US dollar, it’s going to sit on the Chinese yuan… Either US technology and fintech is going to be built on top of [the] 21st-century crypto asset network Bitcoin. Or, we’re not, and the six billion people on the planet that need such a thing are going to go to somebody else. I mean the truth of the matter is, they’ll probably go to Bitcoin, but… instead of US dollars on Bitcoin, they’ll be running Chinese yuan, renminbi on Bitcoin.”
Michael Saylor, bull of bulls
What they said yesterday
What Peter Thiel said…
What he really meant…
Evidence?
A shame…
Crypto AM Editor writes
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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.