Bitcoin isn’t boring – it’s consolidating!
The Week in Review
With Jason Deane
More than one person commented to me this week that Bitcoin was “boring at the moment”.
I’d have to respectfully disagree.
I note from my diary records that a year ago today I did (one of many) live TV interviews for GCTV where we discussed Bitcoin breaking out to over $15,000 for the first time in three years. It was a big deal at the time that generated a lot of excitement and media interest, but even at that point, getting anywhere close to $60,000 seemed like a tall order. So much can change in a year.
It’s true that Bitcoin’s price has been tightly range bound since around October 21, but let’s not underestimate the importance of that.
First, let’s remember that this range is just shy of the all-time high. This is important because it almost certainly means that a consolidation phase is underway. In trading terms this is a good thing – the market has settled down a bit and is taking time to find its equilibrium. It is also building a psychological support level and the longer it holds, the stronger that support is perceived to be.
All this means that any upward price discovery beyond this point has a more solid foundation and is likely to be more sustainable.
This apparent stability can also be a little misleading, camouflaging the developments that are ongoing behind the scenes. While Bitcoin’s development is relentless and is consistently driving new demand, Glassnode reports show that exchange balances are continuing to fall. At some point, these two driving factors are going to interact on a more visible basis, especially given the backdrop of ever increasing inflation and loose monetary policy from almost every corner of the planet.
But until then, it’s up to us in the industry to use these so-called “boring” periods to keep building, informing, educating and promoting.
After all, they don’t last forever.
Have a great weekend!
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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 $2,715,991,590,823, down from $2,732,700,518,046 yesterday.
What Bitcoin did yesterday
We closed yesterday, November 4 2021, at a price of $61,452.23, down from $62,970.05 the day before. The daily high yesterday was $63,123.29 and the daily low was $60,799.66.
This time last year, the price of Bitcoin closed the day at $15,579.85. In 2019, it closed at $9,342.53.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1.175 trillion. To put it into context, the market cap of gold is $11.419 trillion and Meta (Facebook) is $934.25 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $32,829,431,317 yesterday, down from $35,280,203,795 the day before. 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 37.02%.
Fear and Greed Index
Market sentiment today is 73.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 43.21. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 60.02. 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 demand for Bitcoin is insatiable at the institutional advisor level.”
Kevin O’Leary, Canadian businessman, author, politician, and television personality
What they said yesterday
Despite what Jamie Dimon thinks…
What’s Jack got up his sleeve?
Slimmer than none?
There’s more to come…
Crypto AM: Editor’s picks
NFTs set to fund new cryptocurrency movie
Matt Damon becomes latest celebrity to endorse cryptocurrency
Bank of England: Crypto regulation must be pursued as ‘matter of urgency’
Former Chancellor Philip Hammond joins crypto start-up Copper
El Salvador begins mining Bitcoin using volcanic energy
Bitcoin booms but Hong Kong listed crypto stocks slide in wake of China crackdown
Cardano promises ‘industry-defining announcements’ at its biggest ever summit
Binance probed over suspected insider trading
Cardano Alonzo upgrade sees 100 smart contracts in first 24 hours
Crypto AM: Features
Crypto AM: Spotlight
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 AM: Parliamentary Special
Part one of two – April 2021
Part two of two – April 2021
Five-part series – March 2021
Day one…
Day two…
Day three…
Day four…
Day five…
Crypto AM: Events
Cautionary Notes