Slow start for Bitcoin, but cryptocurrency is outpacing stocks and shares
The cryptocurrency markets are broadly flat this morning. Bitcoin is up one per cent to just below $47k, while second-largest cryptocurrency Ethereum is up 1.5 per cent to around $3,800.
A number of commentators, including El Salvador’s Nayib Bukele, have boldly predicted that Bitcoin will hit the elusive $100,000 milestone this year. Evidence so far suggests that it could be a long road.
While it’s been a relatively quiet start to the year for crypto compared to 2021, when it burst out of the gates, it’s at least outperforming the stock markets. Yesterday saw Asian stocks, S&P 500 futures and tech-heavy Nasdaq futures all dip lower, while European stock markets have also opened down this morning.
Analysts have suggested the markets have been hit by a growing belief that the US Federal Reserve will increase interest rates in March, with the CME Group’s FedWatch Tool saying investors were pricing a 61 per cent probability of a 25 basis point rate hike in March – up from the 25.9 per cent probability a month ago.
Last year, rumours of interest rate increases often saw the leading cryptocurrency move downwards in line with riskier tech stocks. Is 2022 the year Bitcoin breaks free of that cycle and becomes viewed as the safe haven asset many in the crypto community believe it to be?
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All feedback on Crypto AM Daily in association with Luno is welcome via email to [email protected] 🙏🏻
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 $2,229,527,771,967, up from $2,225,180,411,845 yesterday.
What Bitcoin did yesterday
We closed yesterday, January 4 2022, at a price of $45,897.58, down from $46,458.12 the day before. The daily high yesterday was $47,406.55 and the daily low was $45,752.46.
This time last year, the price of Bitcoin closed the day at $33,992.43. In 2020, it closed at $7,411.32.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $877.74 billion. To put it into context, the market cap of gold is $11.523 trillion and Tesla is $1.154 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $45,288,793,447, up from $34,534,565,122 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 41.65%.
Fear and Greed Index
Market sentiment today is 24, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 39.46. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 39.62. 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 will continue to overtake gold, $100,000 a possibility.”
Goldman Sachs analysts
What they said yesterday
We’ve come a long way…
The HODL community is growing…
Crypto AM: Editor’s picks
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: 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/
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