Bitcoin is showing great resilience as it enters a new era
The Week in Review
with Jason Deane
If “uncertainty” levels were measured on a dial, it would have exploded under extreme stress this week.
The obvious big stories since my last update are the actions of the SEC against Binance and Coinbase, spearheaded by the controversial Gary Gensler, creating widespread concern among the crypto community that we’re about to see yet another implosion of assets, values and associated industries. In fact, Binance has just suspended accepting USD deposits in the last few minutes.
Meanwhile the XRP case is STILL rumbling on, and it’s now clear that the SEC regards anything that isn’t Bitcoin as a security. Here in the UK, the new FCA rules about buying and advertising cryptocurrency are becoming clearer and it’s certain that things are not going to be the way they were.
No wonder Jim Cramer is calling for everyone to get out while they can. That said, he has been so wrong so often on anything to do with crypto that many traders actually refer to his Mad Money coverage as the “inverse Cramer” effect since it usually triggers the exact opposite to what he forecasts.
Interestingly, despite an initial sell-off on the Binance news, there was less of an impact when the Coinbase news broke a day later. One thing about crypto, despite the undisputable mess the whole industry is in, is that it’s darn resilient.
One thing is for certain; we’re entering a new era and, I, perhaps controversially, welcome it. In my mind altcoins are mostly akin to equities, given most, if not all, have some kind or organisation, leadership, pre-mine or control system in place influenced by humans to one degree or another. In other words, it doesn’t seem unreasonable that there should be some framework of control to manage these investments that might look similar to the systems that control equities.
Market forces and use cases should decide true value, not marketing budget.
Bitcoin, of course, is the only exception to this given its entirely independent and decentralised status, so while governments, policy makers and banks may try and break on-and-off ramps, there’s simply no way to stop Bitcoin itself.
So, there may well be a long period of uncertainty and perhaps even more casualties as the new world order of crypto comes into play, but ultimately it may be a better, fairer and safer environment for new investors.
Or, it may stifle innovation completely for a while, leading to another round of rebalancing and handing advantages to other jurisdictions in the meantime.
One thing is for certain, the genie is out of the bottle and is not going back. Crypto is here to stay, in one form or another, so while the powers that be can have their say, we’ll keep on innovating and building, thank you very much.
Have a great weekend!
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Yesterday’s Crypto AM Daily
In the Markets
The Bitcoin Economy
*Data can be found at https://terminal.bytetree.com/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market this morning was $1.099 billion.
What Bitcoin did yesterday
We closed yesterday, June 9, at a price of $26,508. The daily high yesterday was $26,797, and the daily low was $26,246.
Bitcoin market capitalisation
Bitcoin’s market capitalisation this morning was $513.839 billion. To put it into context, the market cap of gold is $13.062 trillion and Visa is $473.27 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $11.805 billion.
Fear and Greed Index
Fear and Greed is 50, today, in Neutral.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 48.23. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 44. 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.
What they said yesterday
When assessing the percentage of the Short-Term Holder #Bitcoin supply sent to Exchanges, we note that the current inflow is elevated at 0.82%. However, this remains quiet when compared to the peak inflow volume observed across the LUNA/FTX capitulation period, as well as the subsequent relief rally.
Glassnode, on-chain analytics
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Crypto AM: Editor’s picks
FCA’s new crypto advertising rules met with mixed industry response
ChatGPT urges crypto conference panel not to become over-reliant on AI
Mt. Gox customers will have to wait until November to recover lost Bitcoin funds
Sam Bankman-Fried: A tissue of lies soaked with fake tears?
Three-in-four wealth managers are gearing up for more cryptocurrency exposure
Crypto.com granted FCA licence to operate in UK
Q&A with Duncan Coutts, Principal Technical Architect at IO Global
Jamie Bartlett – on the trail of the missing ‘Cryptoqueen’
MPs are falling silent over potential of cryptocurrency
Erica’s ‘Crypto Wars’ handed honours in Business Book Awards
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
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. City PM, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.