Crypto market pressure valve vents? Major correction for crypto, while flash crash on Kraken sees ETH fall to $700
Crypto at a Glance
It may have been a weekend of landmark moments and celebration, but this week has unfortunately kicked off with Bitcoin setting the wrong kind of records. The leading cryptocurrency yesterday traded within a record-setting $10,877 range – plummeting from its all-time highs above $58,000 set over the weekend. This marks the first time it’s ever traded within a five-figure daily price range.
After a bullish week saw Bitcoin climb to almost $1 trillion market cap, Ethereum hit $2,000, and BNB hit $300, there were double-digit drops for almost all major cryptocurrencies yesterday. Ether was perhaps the worst impacted, plummeting over $500 from its weekend highs. A dramatic flash crash to $700 on Kraken even saw Ether briefly going at half price, with reports blaming the mystery event on a fat-fingered trader accidentally entering a wrong number. Let’s hope it wasn’t a prediction.
Is it traders taking profits after seeing the price of Bitcoin double this year? The market hasn’t seen a pullback this dramatic since early January and with record open interest in the futures markets and the market heavily overleveraged, a retrace was widely expected. About $1.50 billion worth of open interest was liquidated by crypto exchanges yesterday, according to tracker Bybt.com. Corrections are usually a healthy part of the process, although for many joining the space recently, it will still likely be a shock. The question now is whether this is part of a larger correction, or whether we’ll see an immediate rebound as we have with other recent drops?
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In the Markets
The Bitcoin Economy
What bitcoin did yesterday
We closed yesterday, 22 February, 2021, at a price of $54,207.32 – down from $57,539.94 the day before.
The daily high yesterday was $57,533.39 and the daily low was $48,967.57.
This time last year, the price of bitcoin closed the day at $9,663.18. In 2019, it was $4,005.53.
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 $900,855,654,514, down from $1,050,556,365,611 yesterday. That means it is still the eighth largest asset in the world by market cap, ahead of Tencent in ninth and more than $150 billion bigger than Facebook.
Bitcoin volume
The volume traded over the last 24 hours was $98,418,440,819, up from $55,866,988,049 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 80.93%.
Fear and Greed Index
Market sentiment remains high despite yesterday’s sell off, up in Extreme Greed at 94 again.
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 63.26. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 54.10. 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
“Gold is, no pun intended, the standard if you want to measure the purchasing power over millennia. The liquidity of gold has been consistent over time. Gold is what defines the X-axis of purchasing power over time. Bitcoin, while it shares defensive qualities with gold, has the additional attribute of being aspirational. What bitcoin seems to possess is the potential to go up to multiples of a moonshot. No one thinks that gold will moonshot. Bitcoin is also finite, unlike gold. No increase in demand can change that. There is zero elasticity.”
– JP Thierot, CEO of Uphold, a digital money platform
What they said yesterday…
Still early days
You were all warned
Only because the dollar gets in the way, Janet
Don’t be like Molly, buy the dip
Crypto AM Editor Writes
Markets respond after Bitcoin pierces $50,000 to reach new all-time-high
Breaking: Bitcoin smashes through $50,000
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Crypto AM: Recommended Events
What’s Next for Crypto Webinar
Baker Botts & Team Blockchain
3 March 2021 17:00 GMT
https://event.on24.com/wcc/r/3025235/72862B4A2DA17F4097395FBA84B845BF
CC Forum
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31 March – 1 April 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. 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 08:30am GMT.
Crypto AM Daily in association with Luno
