The price of Bitcoin (BTC) fell to a three-month low yesterday, dropping below $34k to its lowest level since late January of this year.
The largest cryptocurrency has now seen losses for five straight days. It’s currently changing hands for around $33,600 – down three per over the past 24 hours and 13 per cent since this time last week.
Ethereum (ETH) is also down around three per cent and 13 per cent over the week, with the price of the second-largest cryptocurrency currently sitting at around $2,460.
The crypto market’s declines have again followed traditional markets, which closed down last Friday after tech-heavy Nasdaq tumbled five per cent on Thursday for its worst performance since 2020.
European markets have opened this week in the red, with the pan-European Stoxx 600 down 0.5 per cent and the UK’s FTSE 100 down 0.2 per cent.
The declines follow the US Federal Reserve’s announcement last week that it would raise its main interest rate by half a percentage point for the first time since 2000. It also indicated there may be further rises at meetings in June and July.
Fed chair Jay Powell suggested after the announcement on Wednesday that future raises would be limited, which seemed to provide comfort to investors enough that the markets actually picked up on the news.
Have we reached the bottom for now, or is there farther to fall?
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Friday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/research
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1.540 trillion.
What Bitcoin did yesterday
We closed yesterday, May 8 2022, at a price of $34,059.26. The daily high yesterday was $35,502.94 and the daily low was $33,878.96.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $640.71 billion. To put it into context, the market cap of gold is $11.88 trillion and Tesla is $896.82 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $37.165 billion. 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 35.49%.
Fear and Greed Index
Market sentiment today is 11, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.84. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 33.82. 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
“Bitcoin could become the reserve currency of the world.”
Rand Paul, US Senator
What they said yesterday
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For those of you who missed the Crypto AM DeFi & Digital Inclusion online summit 2021 – you can now watch the event in two parts via YouTube
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