Markets tank amid China mining crackdown
Bitcoin is now down 18% over the last 7 days, Ethereum is down over 20%, XRP is down 22%…. It’s not the start to the week many will have hoped for. Can things turn around swiftly?
In total, nearly $200 billion has been wiped from the cryptocurrency market since Sunday morning. This is on top of $200bn in losses over the last week, driven (again) by Elon Musk tweets questioning Bitcoin’s environmental credentials and (more) China FUD. The music changes but the song remains the same. Is this cycle destined to continue throughout time?
It seems China FUD is the main culprit for this week’s drop, with the country appearing to crackdown on mining in earnest. They look like they’re working province by province, with Yunnan, Inner Mongolia, Sichuan, Xinjiang, and Qinghai all now having ordered Bitcoin miners to halt operations. It’s been argued that in the long term, this could actually be good news for the cryptocurrency, with the likes of MicroStrategy’s Michael Saylor noting that China runs off non-renewable sources like coal and a move elsewhere could cause a move to cleaner energy sources. In the short term though, is there more instability to come?
It’s a similar story again elsewhere, with all major coins falling off the pace. Ethereum is now looking at $2,000 for support, having lost $2,500 after holding the key level for so long. Cardano has also fallen below a key level of its own of $1.50, down to $1.30 at time of writing, while Polkadot is again below $20. Can they regain them?
The good news is that we’re still trading in range, with Bitcoin currently changing hands at around $33k. Ethereum’s upgrade is also still making good progress, Cardano smart contracts are still on the table for August, and countries and billionaire investors continue to talk up cryptocurrency’s prospects. Will it be enough though?
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In the Markets
The Bitcoin Economy
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,379,899,047,217.
What bitcoin did yesterday
We closed yesterday, 20 June, 2021, at a price of $35,698.30, up from $35,615.87, the day before.
The daily high yesterday was $36,059.48 and the daily low was $33,432.08.
This time last year, the price of bitcoin closed the day at $9,332.34. In 2019, it closed at $9,527.16.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $616.08 billion. To put it into context, the market cap of gold is $11.304 trillion and Berkshire Hathaway is $626.3 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $41,150,340,120. 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 76.62%.
Fear and Greed Index
Market sentiment today is 23.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 45.36, Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 37.74. 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
“With proof-of-stake, you’re going to be able to have, some multiple, a significantly higher multiple, in transactions per second, that’s going to improve the utilization and the opportunities to create on ethereum […] In a few years, I think ethereum and maybe two or three other blockchains will have their place, and those will be the winners.”
- Mark Cuban discusses the Ethereum upgrade
What they said yesterday…
Prophet
True
Lot of charts flying around today
Some are better than others. Not sure where this one sits.
Crypto AM Editor Picks
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Part One of Two 21-22 April 2021
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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.