Markets stumble but Doge continues climb ahead of Musk’s SNL appearance
Crypto at a glance
Ethereum’s winning streak came to an end yesterday, having been caught up in a wider sell-off across both the crypto and traditional markets, before recovering later in the day. The second-largest cryptocurrency hit a new all-time high of over $3,500 around lunchtime, before falling to as low as $3,180 as the markets tanked. It’s currently trading at $3,266, down roughly two per cent over the last 24 hours. Can it regain its recent momentum?
It was a similar story for Bitcoin, which has taken a knock of about three per cent since yesterday. The leading cryptocurrency is currently changing hands for around $54,500, having fallen to just above $53,000 before rebounding. This level is becoming increasingly familiar for Bitcoin, as it continues to consolidate. Bitcoin’s market dominance is now down to just 46 per cent, while Ethereum accounts for over 17 per cent of the market. This is an impressive turnaround on the start of the year for Ethereum, though it remains some way off its peak in June 2017, when it accounted for more than 33 per cent of the entire market cap.
The sell-off across the markets has been credited with US Treasury Secretary Janet Yellen’s warning that interest rates in the country may need to rise, potentially signalling an end to the cheap money era. There were, however, some digital assets unaffected. Litecoin (LTC), Chainlink (LINK) and Bitcoin Cash (BCH) all saw double digit gains over the last day, while Ethereum Classic seems to be riding on its parent’s coat tails with gains of almost 50 per cent.
However, the headline news in crypto remains Dogecoin, which is now the fourth-largest cryptocurrency by market cap and punching among the top 200 biggest assets in the world. Its market cap is up to a frankly astonishing $90 billion, making it bigger than BP, Mondelez or British American Tobacco. Which is, at least, a bit funny. Its recent gains come as traders potentially look to front-run Elon Musk’s Saturday Night Live appearance, at which the CEO of Dogecoin is likely to shill the meme token to its millions of viewers. Is the joke cryptocurrency’s success a bad thing for the space though? What impact could it have if things go wrong? Or is it time it started being taken seriously?
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $2,257,273,747,595, down from $2,266,546,755,997 at this time yesterday.
What Bitcoin did yesterday
We closed yesterday, May 4 2021, at a price of $53,333.54, up from $57,200.29 the day before.
The daily high yesterday was $57,214.18 and the daily low was $53,191.43.
This time last year, the price of Bitcoin closed the day at $8,912.65. In 2019, it closed at $5,831.17.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1.021 trillion, down from $1.051 trillion yesterday. To put that into context, the market cap of gold is $11.284 trillion and Alphabet (Google) is $1.56 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $69,841,442,798, up from $57,060,186,611 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 58.53%.
Fear and Greed Index
Market sentiment is up to 48, down from 68 yesterday.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 46.25, down from 47.45 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 46.88, down from 50.56 yesterday. 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
“It may well be that the winner of this painting pays in dollars and not crypto, but I think for us, creating the possibility for this is interesting. There’s clearly a large audience interested in the NFT aesthetic and possibility there. Why wouldn’t that extend to the physical art world, as well? It will be very interesting to see.”
-Sotheby’s CEO Charles Stewart on the decision to accept bitcoin at its upcoming Banksy auction
What they said yesterday
Happy birthday, Hal…
Are you ready?
Positive stories, but is it really a positive for the space?
Crypto AM Editor writes
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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.