Tuesday 5 October 2021 11:10 am

Bitcoin rises to $50k again as Wall Street drops amid inflation fears

It seems that a rising correlation between Bitcoin and traditional markets in recent weeks was a temporary blip, with Wall Street falling just as Bitcoin again surges above $50k.

The leading cryptocurrency is currently trading at around $50,200, up almost six per cent over the past 24 hours. The Dow Jones industrial average, meanwhile, was down almost one per cent, and the technology-focused Nasdaq Composite down 2.1 per cent amid fears that rising inflation will lead to higher interest rates.

A key driver behind the rally, according to analysts, is a growing expectation that the US Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded product (ETF). Last Wednesday, SEC Chairman Gary Gensler reiterated his support for a narrow class of Bitcoin ETFs that would invest in futures contracts instead of the cryptocurrency itself.

The move would allow retail investors to include the asset easily in their brokerage accounts, which could spark a fresh rally for institutional adoption.

It’s a similar story across the cryptocurrency markets today, with the likes of Ethereum and XRP all rising around two percent since yesterday morning. Dogecoin is out in front, up 11 per cent, but for the first time in a while, Bitcoin is surging ahead of the pack. The leading cryptocurrency is still struggling for market dominance though, continuing to hover at around 42 per cent, which is way below highs of 70 per cent at the turn of the year. Can it re-establish its authority?

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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

price of Bitcoin

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 $2,117,270,719,258.§ 

What Bitcoin did yesterday

We closed yesterday, October 4 2021, at a price of $49,112.90, up from $48,199.95 the day before. The daily high yesterday was $49,456.78 and the daily low was $47,045.00. 

This time last year, the price of Bitcoin closed the day at $10,793.34. In 2019, it closed at $8,151.50. 

Bitcoin market capitalisation

Bitcoin’s market capitalisation at time of writing is $930.06 billion. To put it into context, the market cap of gold is $11.156 trillion and Facebook is $919.78 billion. 

Bitcoin volume

The total spot trading volume reported by all exchanges over the last 24 hours was $33,219,748,521, up from $25,876,688,380 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 62.53%.

Fear and Greed Index

Market sentiment today is 59, back in Greed.

Bitcoin’s market dominance

Bitcoin’s market dominance today is 42.75, up from 42.37 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.

Relative Strength Index (RSI)

The daily RSI is currently 61.52, up from 57.95 yesterday. 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

“The most difficult aspect of Bitcoin to grasp is that it’s completely unique — nothing like it has ever existed. There’s nothing for the media to compare it to, and they’re unable to fully understand the magnitude of the coming paradigm shift that Bitcoin will bring.”

Samson Mow, chief strategy officer of Blockstream

What they said yesterday

Bitcoin was last down 3,130 days ago…

Reliable much…

Deep…

Crypto AM: Editor’s picks

El Salvador begins mining Bitcoin using volcanic energy

El Salvador, the first country in the world to make Bitcoin legal tender, has mined over £200 worth of BTC using volcanic energy (Photo by Sean Gallup/Getty Images)

Bitcoin booms but Hong Kong listed crypto stocks slide in wake of China crackdown

Hong Kong's First Bitcoin Counter Opens To The Public
(Getty Images)

Cardano promises ‘industry-defining announcements’ at its biggest ever summit

Cardano says it will make some 'industry defining' announcements at its summit this weekend.
(Getty Images)

Binance probed over suspected insider trading

Changpeng Zhao Binance CEO
(Getty Images)

Cardano Alonzo upgrade sees 100 smart contracts in first 24 hours

Cardano coin
(Getty Images)

Morgan Stanley to launch new research team led by Sheena Shah

morgan stanley
(AFP via Getty Images)

Bitcoin can now be purchased using the Post Office app

Royal Mail Undecided In Further Post Office Closures
(Getty Images)

Simon Nixon tells Seek Ventures to ramp up Bitcoin investment 

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

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 08:00 BST

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