Bitcoin echoes gold as US economy strengthens
The Bitcoin price again dipped below $56,000 yesterday, as its pullback from recent all-time highs continues. Can it hold at this level or is there further to fall?
The markets generally were looking broadly positive yesterday, with US President Joe Biden’s announcement that he will renominate Federal Reserve Chairman Jerome Powell temporarily boosting equities and cryptocurrencies alike.
However, Bitcoin’s rally didn’t last long. It’s currently changing hands for just above $56k, down two per cent over the past 24 hours.
There is a school of thought that the current pullback in cryptocurrencies is a natural part of the cycle after a strong rally over the past month, as investors take profits.
The pullback has also echoed a similar drop for gold, which has also now fallen in each of its last three consecutive sessions after a strong start to November. Global concerns around rising inflation were credited with the yellow metal’s rise in value during the early days of the month, but with the US economy performing well and the consumer in a strong position it appears that gold has lost some of its appeal.
Is this further evidence that Bitcoin’s price movements are more closely aligning with gold as an inflation hedge?
Would you like to help spread the adoption and education of Bitcoin in the UK and even stack some Sats while you’re doing it? Well, now you can!
The Bitcoin Pioneers community, backed by Barry Silbert’s Digital Currency Group, was created to introduce Bitcoin to a mainstream audience in a meaningful way and now has members right across the UK.
We share tips, stories and ideas on how to encourage others to try Bitcoin for the first time. And, thanks to support from Luno, each Pioneer gets £500 of Bitcoin a month to share with beginners, helping them get started.
So, if you’re passionate about Bitcoin, why not join today? Click here to find out more!
All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com 🙏🏻
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 $2,569,791,125,299.
What Bitcoin did yesterday
We closed yesterday, November 21 2021, at a price of $56,289.29, down from $58,730.48 the day before. The daily high yesterday was $59,266.36 and the daily low was $55,679.84.
This time last year, the price of Bitcoin closed the day at $18,364.12. In 2019, it closed at $7,397.80.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1.082 trillion. To put it into context, the market cap of gold is $11.462 trillion and Tesla is $1.064 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $2,554,266,834,102, up from $29,267,584,920 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 43.84%.
Fear and Greed Index
Market sentiment today is 33, in Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 42.57. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 40.24. 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
“This is not a fad. We should tread cautiously, but not fearfully. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”
Jane Hume, Australia’s financial services minister
What they said yesterday
Mark the day…
Is crypto becoming synonymous with South America?
A new chapter in social media history…
Crypto AM: Editor’s picks
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
Bitcoin’s long-awaited Taproot upgrade has arrived
NFTs set to fund new cryptocurrency movie
El Salvador begins mining Bitcoin using volcanic energy
Binance probed over suspected insider trading
Crypto AM: Features
Crypto AM: Spotlight
Crypto AM: Founders Series
Crypto AM: Industry Voices
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowater
Crypto AM: Tomorrow’s Money with Gavin S Brown
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
Crypto AM: Visions of the Future, Past & Present with Alex Lightman
Crypto AM: Tiptoe through the Crypto with Monty Munford
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto AM: Parliamentary Special
Part one of two – April 2021
Part two of two – April 2021
Five-part series – March 2021
Day one…
Day two…
Day three…
Day four…
Day five…
Crypto AM: Events
Cautionary Notes