Choppy waters for the crypto market as screens turn red - CityAM
Crypto at a glance
It was another rough night for the Bitcoin price, falling to a low of $53,350 during the Asian session. It’s since clawed its way back to around the $55,000 level, though it’s still down more than 10% on Sunday’s all-time high.
Yesterday saw the leading cryptocurrency suffer its biggest single-day price decline in more than two weeks, but it now seems to have settled in last week’s comfort zone and sell pressure looks to have faded. Is Bitcoin now set for another period of consolidation before another push?
There could be good news on the horizon for demand too. New research by Mizuho Securities estimates that, of the $380 billion worth of $1,400 cheques set to be sent to citizens, more than 10% of it could find its way into Bitcoin and stocks. Mizuho anticipates that roughly 60% of this will go on Bitcoin – potentially adding up to 3% to the cryptocurrency’s market value.
There was a limited movement elsewhere, with minor gains for Ethereum, DOT and ADA, though nothing much to write home about. There was a bit more pep in XRP’s step, which charged up over 10% to near $0.50.
Vechain and Terra (LUNA) also both continue their good run too, with both climbing more than 20% so far this week and sitting pretty in the top 20 coins by market cap. Is anything else due a big push this week or is everyone still too focused on NFTs and finding the next Beeple?
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In the Markets
Name Price Price Change (24h) Price Change (7 days) Bitcoin (BTC) $55,983.70 -2.79% +4.23% Ethereum (ETH) $1,815.81 +1.50% -0.36% XRP (Ripple) $0.4808 +11.68% +0.02% Monero (XMR) $222.86 -1.74% +0.05% Polkadot (DOT) $34.43 -3.62% -3.15% Algorand (ALGO) $1.18 +1.78% +2.05% Cardano (ADA) $1.05 +3.63% -6.78% Chainlink (LINK) $28.13 +1.42% -9.29% Aave (AAVE) $372.13 +1.37% -13.14% UniSwap (UNI) $29.21 -3.11% -12.17% Celsius (CEL) $4.94 +0.19% -9.65% Binance Coin (BNB) $254.80 +0.06% +5.02% Crypto market cap $1,717,659,982,485 MVIS CryptoCompare Digital Assets 100 Large-Cap Index -0.09 MVIS CryptoCompare Digital Assets 100 Small-Cap Index +0.88 MVIS CryptoCompare Ethereum VWAP Close Index +0.97 Prices and data as of [08:30, 16/03/2021] Source: CryptoCompare.com, MVIS
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/insights/
What Bitcoin did yesterday
We closed yesterday, March 15 2021, at a price of $55,907.20 – down from $59,302.32 the day before.
The daily high yesterday was $60,540.99 and the daily low was $55,393.17. That’s Bitcoin’s highest ever daily low.
This time last year, the price of Bitcoin closed the day at $5,392.31. In 2019, it closed at $3,960.91.
As of today, buying Bitcoin has been profitable for…
99.9% of all days since 2013-04-28.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is $1,044,393,752,585 at time of writing, down from $1,085,955,406,267 yesterday. To put that into context, the market cap of gold is $10.99 trillion and silver is $1.43 trillion.
Bitcoin volume
The volume traded over the last 24 hours was $69,413,155,271, up from $50,875,839,680 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 70.25%.
Fear and Greed Index
Market sentiment is back down in Greed at 71.
Bitcoin’s market dominance
Bitcoin’s market dominance is 61.72. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is 58.28. 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
“While Bitcoin is a new invention of the digital age, the problems it purports to solve — namely, providing a form of money that is under the full command of its owner and likely to hold its value in the long run — are as old as human society itself”
Saifedean Ammous, The Bitcoin Standard
–
What they said yesterday
NFT mania gets manic…
I’m selling this song about NFTs as an NFT pic.twitter.com/B4EZLlesPx — Elon Musk (@elonmusk) March 15, 2021
More manic…
Was this the end goal all along?
The circle of NFTs…
Crypto AM Parliamentary Special Five Part Series
March 2021
Day Five
Day Four
Day Three
Day Two
Day One
Crypto AM Editor writes
Sophia the robot to become next NFT sensation…
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Crypto AM: Recommended Events
CC Forum
Global Investment in Sustainable Development
March 31 to April 1 2021 – Dubai
Global Technology Governance Summit
April 6 & 7 2021 – Tokyo
https://www.weforum.org/events/global-technology-governance-summit-2021
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 08:30am GMT.
Why Are Investors Switching From Bitcoin to Other Crypto Forms?
Cryptocurrencies are digital currencies, which use strong cryptography to secure online transactions. There are various types of cryptocurrencies, such as Bitcoin, Ethereum, Stellar, Ripple and many more.
These digital currencies are developed with mining techniques. This process involves solving complex mathematical problems.
Currently, other cryptocurrencies, including Bitcoin, have very limited use as a means of trading but given the future prospects in terms of investment, investors are showing great confidence in cryptocurrencies.
ESMA sees high risk for investors in non-regulated crypto assets
17 March 2021
Risk Analysis & Economics - Markets Infrastructure Investors
The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes its first Trends, Risks and Vulnerabilities (TRV) Report of 2021 . The Report analyses the impact of COVID-19 on financial markets during the second half of 2020 and highlights the increasing credit risks linked to significant corporate and public debt overhang, as well as the risks linked with investments in non-regulated crypto-assets.
Continued high risk across financial markets
Globally, risks in markets under ESMA’s remit remain very high. The significant rebound of equity markets and the valuation of debt indices which reached pre-pandemic levels, contrast with weak economic fundamentals. The main risk for European Union’s (EU) financial markets is that this ongoing decoupling leads to a reversal in investor risk assessment and a sudden market correction.
Crypto-assets: ESAs remind consumers about risks
As crypto-assets, including so-called virtual currencies such as Bitcoin, continue to attract public attention, the European Supervisory Authorities (EBA, EIOPA and ESMA – together the ‘ESAs’) recall the continued relevance of their previous warnings.
The ESAs remind consumers that some crypto-assets are highly risky and speculative and, as stated in the ESAs’ February 2018 joint warning, consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.
Additionally, crypto-assets come in many forms but the majority of them remain unregulated in the EU. This means that consumers buying and/or holding these instruments do not benefit from the guarantees and safeguards associated with regulated financial services.
In September 2020, the European Commission presented a legislative proposal for a regulation on markets in crypto-assets. Consumers are reminded that the proposal remains subject to the outcome of the co-legislative process and so consumers do not currently benefit from any of the safeguards foreseen in that proposal because it is not yet EU law.
Brexit is changing the trading landscape
The preparedness of market participants ensured that the end of the UK transition period had no discernible stability impact on securities markets. However, the implementation of the EU share trading obligation (STO) is changing the European trading landscape. In 2020 43% of shares with a legal entity in the EEA were traded on UK venues, and a large part of them fall under the STO. ESMA has analysed the evolution of trading between December 2020 and January 2021, and sees that the expected shift in trading domicile occurred in January. Most on-exchange trading moved to EU venues, with the share of lit trading on EU venues increasing to 96% in January, and auction trading to 93%.
Focus on risks for financial stability and investors
In its risk analysis, ESMA provides five in-depth articles looking at sustainable finance and particular market vulnerabilities during the Covid-19 crises:
Vulnerabilities in money market funds: This article uses evidence from the market stress during March 2020 to provide insights on EU money market fund vulnerability to liquidity risk and the impact of regulatory requirements;
This article uses evidence from the market stress during March 2020 to provide insights on EU money market fund vulnerability to liquidity risk and the impact of regulatory requirements; Fund portfolio network, a climate risk perspective: Within the European financial sector, investment funds are considered to have the largest exposure to climate sensitive economic sectors such as utilities, transport, and fossil fuels extraction. This article is a first attempt at a climate-related financial risk assessment of EU funds;
Within the European financial sector, investment funds are considered to have the largest exposure to climate sensitive economic sectors such as utilities, transport, and fossil fuels extraction. This article is a first attempt at a climate-related financial risk assessment of EU funds; Stress simulation in the context of COVID-19: During March 2020 investment funds faced a combination of significant deterioration in liquidity in some segments of the fixed income markets, combined with large-scale investment outflows from investors. Based on data from these events ESMA assesses fund preparedness to future liquidity shocks, involving a Stress Simulation exercise (STRESI);
During March 2020 investment funds faced a combination of significant deterioration in liquidity in some segments of the fixed income markets, combined with large-scale investment outflows from investors. Based on data from these events ESMA assesses fund preparedness to future liquidity shocks, involving a Stress Simulation exercise (STRESI); 54,000 PRIIPs KIDs - How to read them (all): European retail investors now receive more information than ever, and it can be challenging both for investors and supervisors to properly exploit and assess all this information. This article —an application of SupTech— aims to illustrate how these techniques can produce useful measures for European supervisors, policymakers, and risk analysts; and
European retail investors now receive more information than ever, and it can be challenging both for investors and supervisors to properly exploit and assess all this information. This article —an application of SupTech— aims to illustrate how these techniques can produce useful measures for European supervisors, policymakers, and risk analysts; and ESG ratings: As sustainable investing gains traction, environmental, social and governance (ESG) ratings are growing in importance for investors and issuers. This article describes the market for ESG ratings, including types of ratings and key providers, and presents several use cases.
Further information:
Solveig Kleiveland
Senior Communications Officer
✆ +33 (0)1 58 36 43 27