The week in review
With Jason Deane
As Bitcoin continues to wander along aimlessly like it’s going for a long summer stroll on a lazy Sunday afternoon, the world is frantically trying to deal with all sorts of economic issues and take corrective actions.
It’s starting to feel a lot like we’re on a ship with a leaky hull and as soon as we patch one hole that’s letting in water, another one instantly appears.
For us in the UK, the big news of the last 24 hours is, of course, the Bank of England decision to raise rates to 0.5% in an attempt to curb inflation. This will increase people’s borrowing costs more or less instantly, but, on the same day at the same time, Ofgem also announced it would be raising the energy cap from April 1, adding another £643 a year to the average household bill.
If that date sounds familiar, it’s because it’s also the day that the UK Government’s monster 12.5 per cent increase in National Insurance payments is due to come into effect, adding another few hundred pounds a year to the average household bill. All this against a backdrop of stagnant wages and a forecasted 7.25 per cent general inflation rate by the time all this kicks off.
In short, if you’re on a fixed wage, such as a salary, there’s a whole world of hurt coming your way and there’s very little you can do about it. Late last night, I published this article looking at the numbers and asking whether we’re strong enough to weather the storm. We shall see.
In a perverse and terrifying way, this is actually great news for Bitcoin.
Bitcoin may seem like a ‘nice little idea’ or a ‘nice to have’ when you’re in a strong economy and have money you feel you can rely on, but perspectives sure do change quickly when that goes away. Just ask the residents of Turkey, Venezuela or Sudan whose residents have been heavily engaged with the Bitcoin economy of late as their traditional fiat systems come under extreme pressure.
Sure, we’ll do the best we can to work with what we have. Of course we’ll employ the classic British stiff upper lip and “make do and mend”, but there’s something very reassuring about the fact that our leaky ship also has an unsinkable lifeboat with enough room for everyone should she flounder.
And I suspect it’s only a matter of time before others come to the same conclusion.
Have a great weekend!
Want to learn all the basics of Bitcoin? Join my next FREE webinar on Wednesday February 23 at 6pm, including open AMA and FREE £10 in Bitcoin for all qualifying attendees*. Register here.
*18+, UK resident, new to Luno
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The Bitcoin Pioneers community, backed by Barry Silbert’s Digital Currency Group, was created to introduce Bitcoin to a mainstream audience in a meaningful way and now has members right across the UK.
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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 $1.744 trillion, up from $1.705 trillion yesterday.
What Bitcoin did yesterday
We closed yesterday, February 3 2022, at a price of $37,154.60, up from $36,952.98 yesterday. The daily high yesterday was $37,154.60 and the daily low was $36,375.54.
This time last year, the price of Bitcoin closed the day at $36,926.06. In 2020, it closed at $9,180.96.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $719.62 billion. To put it into context, the market cap of gold is $11.481 trillion and Tesla is $894.93 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $20,740 billion, up from $19.570 billion the day before. 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 55.5%.
Fear and Greed Index
Market sentiment today is 20, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.55. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 40.10. 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 number one application of Bitcoin is it is unseizable.”
Mexico’s third richest man, Ricardo Salinas
What they said yesterday
Tells you something…
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Bitcoin hashrate touches new all time high
Peter McCormack: Transforming Bedford FC into a global Bitcoin brand
Exclusive: FTSE plots development of digital asset index in crypto push
Crypto could give London a unique post-Brexit advantage, says Hammond
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New cryptocurrency named ‘JRR Token’ blocked by lawyers for Lord of the Rings creator Tolkien
Crypto AM: Features
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 on the catwalk
Crypto AM: Events
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