WallStreetBets drama reaches crescendo – Bitcoin fixes this. Elon seems to agree!
Crypto at a Glance
It’s been a wild week in the markets, but just when you think it can’t get any wilder, in swaggers Elon Musk and a $6k pump in little over an hour. The US isn’t even awake yet – are we just getting started today?
How did we get here? The big story this week has been the WallStreetBets drama, which appeared to reach a crescendo yesterday when brokers including Robinhood and Webull, made the decision to suspend trading of GameStop, AMC and other stocks involved in the big Reddit short squeeze. The backlash has been swift and vicious from across both the political spectrum and wider society, with many quick to accuse these investment tools – which were supposed to give trading to the average Joe – of being in thrall to hedge funds and calling it evidence of a rigged system.
Whatever their reasoning, it’s been an excellent advert for cryptocurrency and decentralisation. This is one of those rare occasions when Bitcoin does, indeed, fix this.
Enter Friday morning, which has kicked off with huge rises across the board. Bitcoin is up almost $6k in little over an hour – possibly the fastest leap in its history. Is this rapid rise part of the Robinhood backlash? Is it all down to Elon Musk’s decision to make his Twitter bio simply ‘Bitcoin’? Will any coins emulate Doge’s ridiculous 200% gains over the past hour? It’s 2021, anything could happen. Hold onto your hats, and more importantly, hold onto your wallets – research your investments and don’t make rash decisions, no matter how much excitement is in the air.
In the Markets
The Bitcoin Economy
What bitcoin did yesterday
We closed yesterday, 28 January, 2020, at a price of $31,649.61 – down from $30,432.55 the day before.
The daily high yesterday was $31,891.30 and the daily low was $30,023.21.
This time last year, the price of bitcoin closed the day at $9,358.59. In 2019, it was $3,470.45.
As of today, buying bitcoin has been profitable for…
99.9% of all days since 2013-04-28.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is currently $684,969,969,599, up from $583,723,872,144 yesterday. GameStop’s market cap is currently $13.5 billion, Nokia’s is $21.52 billion, and BlackBerry’s is $8.14 billion. Tesla’s market cap is $791.9 billion, so another $100 billion or so before the re-flipping.
Bitcoin volume
The volume traded over the last 24 hours was $92,201,770,546, up from $67,576,798,880 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 99.04%.
Fear and Greed Index
The sentiment Index continues its bombastic streak, soaring right back up into Extreme Greed – up to 77 again from 55 yesterday. Where to next? Nobody knows. Spin the wheel.
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 65.88. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 60.58. 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.
Google trends
The trend in Google searches over the last 90 days. Google shows this chart on a relative basis with a max score of 100 on the day that had the most Google searches for that keyword. The latest score is 36 – taken from 26 January.
Convince your Nan: Soundbite of the day
What they said yesterday…
MicroStrategy announces its bold corporate vision – HODL
Welcome everyone
They were just looking for an excuse, to be fair
It’s happening
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Crypto AM: Recommended Events
The Davos Agenda
25 – 29 January 2021 – Virtual
https://www.weforum.org/events/the-davos-agenda-2021
6th Edition Global Blockchain Conference
9 February 2021 – Dubai
https://agoragroup.ae/events/global_blockchain_congress_6th_edition
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10 February 2021 – Dubai
https://agoragroup.ae/events/global_defi_congress%20
CC Forum
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3 – 4 March 2021 – Dubai
Global Technology Governance Summit
6 – 7 April 2021 – Tokyo
https://www.weforum.org/events/global-technology-governance-summit-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.
Crypto AM Daily in association with Luno
