Bitcoin market cap back at $1 trillion ahead of possible US stimulus
Crypto at a glance
Oh $1 trillion Bitcoin market cap, how we missed thee! Bitcoin is back trading up near its all-time highs again, exchanging hands at more than $54,000 again at time of writing for the first time in a couple of weeks.
The market cap is now comfortably above $1 trillion, having first hit the same mark, albeit briefly, just a fortnight ago.
Will it sustain that level longer this time? Are we now set for another push to new all-time highs?
The obvious driver here is the increasing likelihood of incoming stimulus, which we discussed yesterday. However, we also continue to see an influx of institutional investors entering the space. The weekend saw Chinese tech giant Meitu become the first Chinese company to announce that they have invested in Bitcoin, and it seems positive movements in the Asia markets are reflecting this with a big pump overnight.
There was also more good news as Norway’s Aker ASA became the first Scandanivian company to move into the space, with the 180-year old oil multinational establishing a new unit dedicated to investing in Bitcoin and blockchain technology.
It’s not just Bitcoin riding a wave this week, with everything in the green or thereabouts. Ethereum is on the up too at more than $1,800. The second-largest cryptocurrency is pushing again towards its recently-made all-time highs of more than $2,000.
This year’s hot Ethereum use case appears to be non-fungible tokens, also known as NFTs – a fast-growing sub-sector of blockchain-certified unique collectibles – that so far has largely been built atop the Ethereum blockchain.
The mania surrounding them seems to be gathering pace too, with individual digital artworks created as NFTs being auctioned off for millions of dollars in recent weeks. Will it spread onto other smart contract blockchains?
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In the markets
|Name||Price||Price Change (24h)||Price Change (7 days)|
|Binance Coin (BNB)||$245.99||+5.59%||+0.05%|
|Crypto market cap||$1,662,115,823,854|
|MVIS CryptoCompare Digital Assets 100 Large-Cap Index||+5.97|
|MVIS CryptoCompare Digital Assets 100 Small-Cap Index||+5.13|
|MVIS CryptoCompare Ethereum VWAP Close Index||+4.92|
|Prices and data as of [08:30, 9/03/2021]||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, March 8 2021, at a price of $52,246.52 – up from $51,206.69 the day before. That’s the highest daily close since February 22.
The daily high yesterday was $52,314.07 and the daily low was $49,506.05.
This time last year, the price of bitcoin closed the day at $8,108.12. In 2019, it was $3,901.13.
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 $1,005,407,221,246 at time of writing, up from $923,187,647,227 yesterday. For context, the total market cap of gold is $10.758 trillion. Bitcoin’s market cap is almost $300 billion greater than Facebook and $500 trillion greater than Tesla’s, having been some distance behind both at the turn of the year.
The volume traded over the last 24 hours was $52,963,089,659, up from $45,890,393,684 yesterday. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
The price volatility of Bitcoin over the last 30 days is 78.66%.
Fear and Greed Index
Market sentiment is still in Extreme Greed at 81 again. While still certainly high, it’s reassuring that sentiment has cooled somewhat compared to the last time the bitcoin price was punching at these highs as it suggests that the market is less susceptible to volatility.
Bitcoin’s market dominance
Bitcoin’s market dominance is 61.41. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is 63.12. 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
“Yes, Bitcoin consumes electricity. And pays for it at the locally prevailing market prices. But we believe Bitcoin will enable applications that can create tremendous value. If so, it will be engrained into the social fabric and can’t go to zero since it’s immune to the political forces that destroys a currency. If this scenario plays out, we might change our focus from the price of a bitcoin to that of a satoshi (one bitcoin is one hundred million satoshi). If our phones are full of Bitcoin applications in five years, the network’s value is a Stairway to Heaven.”
Aker ASA owner Kjell Inge Røkke in shareholder letter
What they said yesterday
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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.