DOT takes lead as Bitcoin recovers, but retail market still yet to join party
A swift recovery for Bitcoin has seen the price of the largest cryptocurrency climb back to more than $57k, having briefly dropped below the $55k mark yesterday.
The market leader also now seems to be dragging alt coins with it. The Ethereum (ETH) price is up five per cent over the past 24 hours to more than $3,600 after its recent weak performance. Solana (SOL) and Cardano (ADA) are also both up around five per cent since yesterday morning, though Polkadot (DOT) is the standout performer. DOT is now up 20 per cent to more than $40 for the first time since May.
Bitcoin does, however, continue to outperform the S&P 500, which is down about four per cent from an all-time high in September. Bitcoin seemed to be moving in lockstep with the broader financial markets last month, as a crisis at Chinese property giant Evergrande threatened to engulf the world in a fresh downturn. That it seems to have now decoupled again will be welcome news given growing concern about inflation and supply chain blockages around the world.
The recent price action for Bitcoin also seems to have been driven primarily by demand from institutional investors, suggesting that there could be more to come when retail buyers begin returning to the fold.
Google Trends data shows that Bitcoin search interest is at its lowest levels in a year, which could be taken as a sign that there’s less consumer interest because fewer people are attempting to learn about Bitcoin for the first time.
Contrarily, Arcane Research noted that the Chicago Mercantile Exchange (CME), an early adopter of Bitcoin futures that’s strictly available to institutional investors, now has global open interest in bitcoin futures of 17 per cent, which is the highest level recorded since February 2021.
In other news yesterday, the United States now accounts for the largest share of the world’s Bitcoin mining, according to data published by researchers at Cambridge University. With China banning mining entirely, the United States now leads the way with 35.4% of the global hash rate as of the end of August, followed by Kazakhstan and Russia.
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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 $2,383,588,660,255.
What Bitcoin did yesterday
We closed yesterday, October 13 2021, at a price of $57,401.10, up from $56,041.06 the day before. The daily high yesterday was $57,688.66 and the daily low was $54,370.97.
This time last year, the price of Bitcoin closed the day at $11,429.51. In 2019, it closed at $8,374.69.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1.092 trillion. To put it into context, the market cap of gold is $11.39 trillion and Facebook is $915.02 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $42,829,266,730, up from $40,196,974,752 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 57.86%.
Fear and Greed Index
Market sentiment today is 70, in Greed.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 45.30, up from 45.23 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 69.54, up from 64.45 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 critical question faced by bankers and investors worldwide is “Do you understand Bitcoin?””
What they said yesterday
On the precipice of something great…
A sign of the times…
How times have changed…
Crypto AM: Editor’s picks
Bank of England: Crypto regulation must be pursued as ‘matter of urgency’
Former Chancellor Philip Hammond joins crypto start-up Copper
El Salvador begins mining Bitcoin using volcanic energy
Bitcoin booms but Hong Kong listed crypto stocks slide in wake of China crackdown
Cardano promises ‘industry-defining announcements’ at its biggest ever summit
Binance probed over suspected insider trading
Cardano Alonzo upgrade sees 100 smart contracts in first 24 hours
Morgan Stanley to launch new research team led by Sheena Shah
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