Both Bitcoin and Ethereum show signs of renewed confidence
Confidence seems to be slowly returning to the crypto market, with the Fear and Greed Index that measures consumer sentiment again edging up slightly this morning. Bitcoin continues to trade sideways though, as it has for the past seven days. It’s changing hands for around $38,500 this morning, practically unmoved since this time yesterday.
Ethereum is also showing signs of a strong recovery. The second-largest cryptocurrency is currently up one per cent over the last 24 hours to $2,750. That’s also a 10 per cent increase over the last seven days, compared to less than two per cent for Bitcoin.
The Ethereum price recently bottomed at $2,200, a 55 per cent drop against its all-time high of $4,812 on November 7. Ethereum (ETH) has dropped 50 per cent or more from its all-time high (ATH) seven times in the past. Interestingly, a 50 per cent drop in value from ATH takes 38 days on average for ETH. While spectacular and painful, the current drop has been the slowest in history and occurred 75 days after the ATH in November. Recovery historically takes longer – excluding the 2018 ‘crypto winter’ episode in which it took ETH three full years to surpass its previous ATH – the average is 165 days.
Ethereum and the broader crypto ecosystem look very different from 2016-2018. Will history repeat itself and prices return to the $4,000 range as early as July 2022?
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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 $1,768,051,811,736, up from $1,764,520,795,045 yesterday.
What Bitcoin did yesterday
We closed yesterday, February 1 2022, at a price of $38,743.27, up from $38,647.26 yesterday. The daily high yesterday was $39,115.13 and the daily low was $38,113.66.
This time last year, the price of Bitcoin closed the day at $35,510.29. In 2020, it closed at $9,344.37.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $725.39 billion. To put it into context, the market cap of gold is $11.421 trillion and Tesla is $935.21 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $20,299,767,651, down from $20,308,471,420 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 55.69%.
Fear and Greed Index
Market sentiment today is 28, in Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.77. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 39.11. 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 more I have immersed myself in the understanding of money, long-term value, and the history of finance, the importance of #bitcoin became apparent.”
Former NFL superstar Drew Brees
What they said yesterday
Saylor, boiling it down…
Portugal, leading the way…
That’s what a little perspective does…
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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. City PM, 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