Elon’s Tesla play sends Bitcoin ballistic like one of his SpaceX Falcon 9 Rockets!
Crypto at a Glance
Well, the inevitable indeed happened. After week’s of batted eyelashes, flirty texts, and pumping Doge, Elon Musk finally put up and put out. Musk has boarded the big bus to bitcoin city, population 21 million AND NEVER ANY MORE THAN THAT.
That’s right, Elon Musk’s car firm Tesla yesterday announced that it bought roughly $1.5bn (£1.1bn) worth of Bitcoin in January and expects to start accepting it as payment in future. The move sent the crypto market wild, with Bitcoin soaring to new all-time highs faster than a rocket-propelled greyhound on an ice rink. This was very much a predictable price move, given the fervour when Musk simply added the word Bitcoin to his Twitter bio. The price of Bitcoin is now approaching $50,000 and its total market cap almost $900 billion. Will it hit a trillion?
The move somewhat overshadowed the launch of Ether futures on the Chicago Mercantile Exchange, though there were big gains across the board yesterday. Ether is currently trading hands at around the $1,800 level, ADA is holding strong as the fourth-biggest cryptocurrency though DOT is certainly giving it a run for its money, and Algorand is seeing a big leap after a quiet few weeks. The total market cap of the entire crypto market is now almost $1.4 trillion.
Where to today?
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In the Markets
The Bitcoin Economy
What bitcoin did yesterday
We closed yesterday, 8 February, 2021, at a price of $46,196.46 – up from $38,903.44 the day before.
The daily high yesterday was $46,203.93 and the daily low was $37,446.15. $38,076.32
This time last year, the price of bitcoin closed the day at $9,865.12. In 2019, it was $3,666.78.
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 $875,025,777,023, up from $699,914,428,733 yesterday. That, somewhat ironically, makes it bigger than Tesla. The latest price boom has also seen it become the ninth largest asset by market cap, with the cryptocurrency also flipping Facebook and Alibaba yesterday. Could it break a trillion dollar market cap soon?
Bitcoin volume
The volume traded over the last 24 hours was $122,450,231,034, up from $67,711,201,748 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 101.22%.
Fear and Greed Index
Market sentiment is back at its all-time highs from last month, in Extreme Greed at 95. This is pretty understandable, given yesterday’s news. What’s more unclear is what exactly has to happen to get the index up to 100 points. Apple?
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 63.65. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 75.59. 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 jumped by almost $3,000 in minutes today as it was reported that Tesla had bought $1.5 billion worth of the currency. It’s not surprising to see the new all time high so soon – as trust in cryptocurrencies grows and big companies, in this case, Tesla – recognise its potential use – not just as an investment, but as a mass day-to-day payment method I have no doubt that many companies will follow in the footsteps of Tesla. I’d like to add that besides influential feats like this one that create a sudden spike, the growth pattern we have seen in general over the last year clearly lays the path for the next leg up in Bitcoin’s price cycle which could easily see it reach $100,000 this year.”
– Marcus Swanepeol, CEO of Luno
What they said yesterday…
The bromance the world never knew it needed
Apparently investing in Bitcoin does not make you good at puns
What happens now?
Heartwarming
Heartbreaking
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Crypto AM: Events Spotlight
Crypto AM: Recommended Events
Bitcoin for Corporations – MicroStrategy
3 February 2021 – online – 12.00 – 16:45 EST
https://www.microstrategy.com/en/resources/events/world-2021/bitcoin-summit
6th Edition Global Blockchain Conference
9 February 2021 – Dubai
https://agoragroup.ae/events/global_blockchain_congress_6th_edition
Global DeFi Conference
10 February 2021 – Dubai
https://agoragroup.ae/events/global_defi_congress%20
CC Forum
Global Investment in Sustainable Development
3 – 4 March 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
