Crypto markets fall again ahead of possible US rates rise
Bitcoin slipped to a low of $45,000 on Monday, down almost 10 per cent from its weekend highs of more than $50k. It’s since climbed back to around the $47k level, but can it hold or are there more sharp price movements in store?
The sudden drop yesterday marked Bitcoin’s worst daily performance since December 4, with analysts speculating that the sell-off is related to a US Federal Reserve decision on interest rates later this week.
The Fed is due to announce on Wednesday whether it will wind down its bond purchases and start raising interest rates next year. Stock markets also fell on the news, with a rate hike giving people somewhere else to put their assets rather than the stock and crypto markets.
The overall crypto market is down around five per cent in the last 24 hours, and is currently valued at about $2.14 trillion. Ethereum fell another six per cent, even further below the $4,000 level that it held for so long before the weekend, while almost all other major cryptocurrencies have fallen similar amounts.
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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 $2,120,280,356,158, down from $2,262,085,882,667 yesterday.
What Bitcoin did yesterday
We closed yesterday, December 13 2021, at a price of $46,737.48, down from $50,098.34 the day before. The daily high yesterday was $50,205.00 and the daily low was $45,894.85.
This time last year, the price of Bitcoin closed the day at $19,246.64. In 2019, it closed at $7,124.67.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $970.52 trillion. To put it into context, the market cap of gold is $11.361 and Tesla is $970.52 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $33,177,347,876, up from $22,952,184,381 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 60.37%.
Fear and Greed Index
Market sentiment today is 21, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.01. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 34.06. 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
Bitcoin can’t be hacked or copied, and won’t be banned. The only legitimate risk is a black swan; an unknown-unknown.
Michael Saylor, MicroStrategy CEO
What they said yesterday
Are you a person of the year?
The party hasn’t started…
Goin’ up…
Crypto AM: Editor’s picks
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
Bitcoin’s long-awaited Taproot upgrade has arrived
NFTs set to fund new cryptocurrency movie
Crypto AM: Features
Crypto AM: Spotlighthttps://citypm.eu/bumper-set-to-fire-up-its-liquidity-provision-program-today/embed/
Crypto AM: Founders Series https://citypm.eu/using-blockchain-to-overcome-the-challenge-of-universal-connectivity/embed/
Crypto AM: Industry Voices https://citypm.eu/the-unforeseen-reputational-risks-of-nfts-and-how-to-avoid-them/embed/
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowaterhttps://citypm.eu/creating-a-future-of-access-to-financial-tools-for-everyone-with-meld/embed/
Crypto AM: Tomorrow’s Money with Gavin S Brownhttps://citypm.eu/will-tesla-change-direction-on-bitcoin-again/embed/
Crypto AM: Mixing in the Metaverse with Dr Chris Kacherhttps://citypm.eu/the-metaverse-is-here-and-even-facebook-is-getting-on-board/embed/
Crypto AM: Visions of the Future, Past & Present with Alex Lightman https://citypm.eu/e-naira-digitising-nigeria-improving-lives-and-advancing-national-infrastructure/embed/
Crypto AM: Tiptoe through the Crypto with Monty Munford https://citypm.eu/ive-spotted-curious-similarities-between-bitcoin-and-the-taliban/embed/
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto AM: Parliamentary Special
Part one of two – April 2021https://citypm.eu/the-government-is-cautious-about-crypto-but-i-think-well-get-there/embed/
Part two of two – April 2021https://citypm.eu/opening-our-eyes-to-financial-inclusion-for-the-good-of-the-economy/embed/
Five-part series – March 2021
Day one…https://citypm.eu/financial-services-bill-time-to-act/embed/
Day two…https://citypm.eu/financial-institutions-should-consider-appointing-ai-officers/embed/
Day three…https://citypm.eu/dlt-may-not-be-the-silver-bullet-but-its-worth-a-shot/embed/
Day four…https://citypm.eu/theres-a-real-prize-for-the-uk-to-lead-when-it-comes-to-distributed-digital-id/embed/
Day five…https://citypm.eu/we-need-to-strap-a-rocket-to-the-governments-fintech-thinking/embed/
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.
All information is correct as of 08:00 BST