Friday 8 January 2021 11:46 am

Bitcoin hits $40,000, flips Tesla

Crypto at a Glance 

The price of bitcoin continues to hit new highs, bouncing over $40,000 like Tigger on amphetamines before a sharp correction saw it crash $3,000 in less than an hour.

You can’t keep a good cryptocurrency down, though, and the world’s oldest was soon back in action, springing back to around the $39,000 mark. This kind of volatility is to be expected in a bull market as people take profits – which might not make it any less nerve wracking when it happens, but this is cryptocurrency and those of us who have been here a while have learnt to roll with the punches.

via GIPHY

Elsewhere, Ether also saw a brief retrace before returning to the $1,200 level where it seems to be making a home for itself. In case you missed it, Ethereum’s recent price boom has seen it join the ranks of the top 100 assets by market capitalisation. It’s currently 99th on the list – 1 place above Morgan Stanley. It’s slightly less-good news for other alts though, many of which have seen corrections over the past 24 hours after a week of strong gains – although they can certainly still consider the last 7 days a success, with the majority hugely in the green. 

In the Markets

The Bitcoin Economy

What bitcoin did yesterday

We closed yesterday, 7 January, 2020, at a price of $39,371.04 – up from $36,824.36 the day before. That’s the highest closing price in history and the sixth day in a row that the price of bitcoin has closed over $30,000. 

The daily high yesterday was $40,180.37 and the daily low was $36,491.19. Yet again, those are both the highest daily highs and highest daily lows in Bitcoin’s history.

This time last year, the price of bitcoin closed the day at $8,163.69 and in 2019 it was $4,025.25. That’s a 382% increase in a year and an 878% increase over two years.

As of today, buying bitcoin has been profitable for… 

99.9% of all days since 2013-04-28.

Market capitalisation

Bitcoin’s market capitalisation is currently $723,838,674,236 – up from $686,995,403,765 yesterday. Yesterday, Bitcoin briefly flipped Tesla’s market capitalisation before the car manufacturer enjoyed a resurgence to re-take the lead. However, Bitcoin is now less than $50 million away from flipping Facebook ($765.44 billion), which would make the Winklevoss twins very happy at least.

Bitcoin volume

The volume traded over the last 24 hours was $88,912,335,689, up from $78,748,294,394 yesterday. This is among the highest 24-hour trading volumes on record for Bitcoin. 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 72.72%.

Fear and Greed Index

The sentiment continues its marathon streak in Extreme Greed territory and is back up at 93, having spent yesterday slumming it at 91. The last time the sentiment was not in Extreme Greed was 5 November, 2020. It’s important to remember that the index doesn’t stay this high very often and can mean a correction is on the cards, though this length of time is unprecedented.

Bitcoin’s market dominance

Bitcoin’s market dominance stands at 70.21. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.

Relative Strength Index (RSI)

The daily RSI is currently 84.14. 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. 

Google trends

The trend in Google searches over the last 90 days. Google shows this chart on a relative basis with a max score of 100 on the day that had the most Google searches for that keyword. The latest score is 68 – taken from 5 January.

Convince your Nan: Soundbite of the day

“It’s [the deficit] why millennials and Gen Z intuitively are buying bitcoin because they know they’re kind of screwed. The Baby Boomers have eaten all their future lunches in lots of ways by building these giant deficits.”

  • Mike Novogratz, CEO of Galaxy Investment Partners

What they said yesterday…

Has the opportunity already been and gone?

Michael Saylor – CEO, bitcoin bull, and poet

Is Cameron Winklevoss the new Nostradamus?

…Or is Bill Miller?

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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 AM, 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.

Crypto AM Daily in association with Luno

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