Crypto markets continue to recover, although low volumes cast shadow
The crypto markets continue to show signs of recovery this week, with Bitcoin currently changing hands at just below $38k – the highest the price has been since last Friday.
Elsewhere, Ethereum is also up around three per cent since yesterday morning to around $2,500. However, with trading volume again falling after a sharp uptick over the weekend, can the rebound be sustained?
The recovery across the crypto markets echoes a general uptick across global financial markets, with FTSE 100 index of blue-chip shares up 1.25 per cent as it continues to rebound from Monday’s 2.6 per cent tumble.
Bitcoin’s long-term correlation with the stock market has been relatively low since the mass sell-off at the start of the Covid pandemic, leading many prominent institutional investors to tout the asset’s potential as a safe haven asset.
With Bitcoin’s correlation with the broader financial market sitting at such highs, will Bitcoin’s digital gold narrative crack? Or will it see a resurgence as investors increasingly feel the need to protect their portfolios against inflation?
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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 $1,691,715,996,544, up from $1,621,685,496,333 yesterday.
What Bitcoin did yesterday
We closed yesterday, January 23 2022, at a price of $36,954.00, up from $36,654.33 the day before. The daily high yesterday was $37,444.57 and the daily low was $35,779.43.
This time last year, the price of Bitcoin closed the day at $32,569.85. In 2020, it closed at $9,162.92.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $707.4 billion. To put it into context, the market cap of gold is $11.733 trillion and Tesla is $922.31 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $27,840,957,085, down from $41,444,844,200 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 53.39%.
Fear and Greed Index
Market sentiment today is 23, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.57. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 32.38. 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
“I’m going to work to make Michigan the most pro Bitcoin state in the country.”
US Senator Jim Ananich
What they said yesterday
What a future to look forward to…
“Next please”
Jack, giving us a personal tour…
Crypto AM: Editor’s picks
Crypto crazy couple name baby after favourite digital asset
Bitcoin hashrate touches new all time high
Peter McCormack: Transforming Bedford FC into a global Bitcoin brand
Exclusive: FTSE plots development of digital asset index in crypto push
Crypto could give London a unique post-Brexit advantage, says Hammond
Diamond claws: Crypto trading hamster dies after standout investing career
New cryptocurrency named ‘JRR Token’ blocked by lawyers for Lord of the Rings creator Tolkien
El Salvador to build Bitcoin city at base of volcano
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