Is confidence returning to the cryptocurrency markets?
It was a strong weekend in the cryptocurrency markets, with the Bitcoin price climbing back over the psychologically-important $40k mark on Friday for the first time since January 21.
The largest cryptocurrency by market cap is currently changing hands for around $42,500, up two per cent since this time yesterday morning and 14 per cent since this time last week. Is there more upside to come?
The latest price increase means Bitcoin has risen above Facebook’s parent company Meta to become the world’s ninth most valuable asset by market cap. Gold remains the undisputed number one asset at $11.4tn, with Apple in second place on $2.8tn.
Bitcoin spent much of last year with a market cap of more than $1 trillion – a much celebrated landmark. Can it reach that level again?
There generally seems to be a cautious sense of optimism emerging, with the Fear and Greed Index that measures investor sentiment climbing to its highest level of this year so far at 45. It’s still in Fear, but its rapid ascent is a sign that confidence could be returning to the crypto market.
Ethereum also broke its own psychologically-important landmark this weekend, climbing above $3k on Saturday, where it’s largely remained.
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Friday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1.961 trillion.
What Bitcoin did yesterday
We closed yesterday, February 6 2022, at a price of $42,412.43, up from $41,441.16 yesterday. The daily high yesterday was $42,500.79 and the daily low was $41,244.91.
This time last year, the price of Bitcoin closed the day at $38,903.44. In 2020, it closed at $9,795.94.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $810.12 billion. To put it into context, the market cap of gold is $11.501 trillion and Tesla is $927.25 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $21,158 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 62.14%.
Fear and Greed Index
Market sentiment today is 45, in Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.94. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 59.81. 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.
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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 08:00 BST