Volatility strikes again – markets take overnight battering, though is rebound already on cards?
Crypto at a glance
The week ends as it began – a sea of red. After appearing to recover this week’s early losses and stabilise at more than $50,000, Bitcoin saw a vicious drop late Thursday and had fallen to as low as $44,279 this morning. It has since recovered slightly above $46,000.
The drop marks a volatile week for Bitcoin. It’s now looking down the barrel of only its third double digit weekly loss in the last 11 months.
Bitcoin has suffered just eight weekly declines in that time, which has enabled the cryptocurrency to rally from $10,000 to above $58,000 since last October.
The market was certainly looking overheated, and with the stock market also taking a dip, the correction seems overdue. The question now is whether $44,279 marks the bottom and it can bounce back stronger next week?
It’s the same story across the board, with double digit drops for recent strong-performer Binance Coin falling 11%, Ether down 11%, and DOT down 13%. Only Cardano has emerged from the last 24 hours unscathed, up 1% – likely buoyed by the news of its upcoming hard fork and the introduction of native tokens and multi-asset support.
Zooming out a bit, a new survey from financial advisory group deVere has found 70% of its clients aged over 55 had already invested in digital currencies, or were planning to do so. Nigel Green, CEO of deVere Group, noted that: “Baby boomers and Gen X, who own most of the world’s wealth, are embracing the cryptocurrency revolution. This will serve to further bolster prices in the market in the longer-term.” Is he right?
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In the Markets
| Name | Price | Price Change (24h) | Price Change (7 days) | |
| Bitcoin (BTC) | $45,684.83 | -9.58% | -11.69% | |
| Ethereum (ETH) | $1,460.27 | -10.79% | -24.22% | |
| XRP (Ripple) | $0.4312 | -9.25% | -20.57% | |
| Monero (XMR) | $199.48 | -4.19% | -26.64% | |
| Polkadot (DOT) | $29.04 | -13.66% | -6.63% | |
| Algorand (ALGO) | $0.9342 | -14.16% | -30.45% | |
| Cardano (ADA) | $1.05 | +1.01% | +15.99% | |
| Chainlink (LINK) | $24.80 | -9.68% | -24.21% | |
| Aave (AAVE) | $317.62 | -15.45% | -26.50% | |
| UniSwap (UNI) | $22.04 | -12.27% | +8.49% | |
| Celsius (CEL) | $4.83 | -6.21% | -13.66% | |
| Binance Coin (BNB) | $221.27 | -11.01% | -14.98% | |
| Crypto market cap | $1,383,004,052,819 | |||
| MVIS CryptoCompare Digital Assets 100 Large-Cap Index | -10.39 | |||
| MVIS CryptoCompare Digital Assets 100 Small-Cap Index | -12.68 | |||
| MVIS CryptoCompare Ethereum VWAP Close Index | -11.78 | |||
| Prices and data as of [09:00, 26/02/2021] | Source: CryptoCompare.com, MVIS |
The Bitcoin Economy
*Definitions and insights can be found at https://bytetree.com/insights/
What Bitcoin did yesterday
We closed yesterday, February 25 2021, at a price of $47,093.85 – down from $49,705.33 the day before.
The daily high yesterday was $51,948.97 and the daily low was $47,093.85.
This time last year, the price of Bitcoin closed the day at $9,341.71. In 2019, it was $3,882.70.
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 $851,833,133,361, down from $939,867,830,278 yesterday. That means it drops below Tencent and is now the ninth largest asset in the world by market cap – still some distance above Facebook. Gold has a market cap of $11.209 billion.
Bitcoin volume
The volume traded over the last 24 hours was $64,730,966,514, down from $56,846,777,902 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 84.69%.
Fear and Greed Index
Market sentiment drops to 55 today. That’s the lowest it’s been since January 22.
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 62.43. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 48.36. 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
“Civilization is based on clean energy, clean water, clean communication, & clean money. Bitcoin provides corporations protection against currency devaluation as well as an option to participate in the explosive growth of the digital monetary network.”
Michael Saylor, endless source of Bitcoin quotes
What they said yesterday…
*Not financial advice*…
Buying bitcoin, maybe running a business intelligence giant...
Especially this week…
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Crypto AM: Recommended Events
What’s Next for Crypto Webinar
Baker Botts & Team Blockchain
March 3 2021 17:00 GMT
https://event.on24.com/wcc/r/3025235/72862B4A2DA17F4097395FBA84B845BF
CC Forum
Global Investment in Sustainable Development
March 31 to April 1 2021 – Dubai
Global Technology Governance Summit
April 6 to 7 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.