We’re all crypto people now
Crypto market takes a dive with Bitcoin leading the way – TechCrunch
Cryptocurrency prices continued to tumble Friday with Bitcoin leading the charge, with prices for the internet currency dipping below $50,000 for the first time since early March.
Bitcoin is down roughly 20% week-over-week, around 30% from its all-time high of nearly $65,000 early last week. The market cap of the coin has dipped below $1 trillion. The tumble has been less severe for Ethereum, which hit an all-time high just yesterday but has since dropped 13% as the broader market has crawled back.
Plenty of altcoins have also taken a beating. Dogecoin erased the breakneck gains of the week and then some, nearly halving its price after a meteoric climb last weekend. XRP is down 35% week-over-week, Stellar is down 30% and Polkadot is down 25% since last week.
Overall, Coinmarketcap estimates the global crypto market has shrunk around 10% in the past 24 hours.
Crypto prices have been on a tear for the past several months, but the past week has been the clearest sign of a correction to climbing prices, though many see news of President Biden’s adjustment to the hikes on the capital gains tax as the most apparent reason for the market’s slide as investors cash out hoping their gains won’t be reached by a retroactive application of the rules.
Coinbase, which went public last week via direct listing, shaved about 10% off its share price this week, but was largely unaffected Friday in intraday trading.
Time to buy the dip, or have the crypto markets got further to fall? - CityAM
Crypto at a glance
It’s a sea of red this morning, as a tough week in the crypto markets continues to get tougher. More than $400 billion has now been wiped off the cryptocurrency market over the last seven days – almost 20 per cent of its total value. Is it time to buy the dip, or is there still further to fall before we can talk about a recovery?
The Bitcoin price has extended its recent decline, falling to below $50,000 for the first time since March 8. The leading cryptocurrency is currently trading at just below $49,000 and looking for support. Will it find it here and recover back to the $50-60k range it’s been in for so long now?
All other major cryptocurrencies have also experienced significant losses over the last 24 hours, with the vast majority seeing double-digit drops. Even Ethereum (ETH) is now down over the last 24 hours, despite setting a new all-time high of more than $2,600 yesterday. It’s still trading over $2,000, but can it hold?
There have been many causes speculated for the sudden drop. Bitcoin has certainly been running hot lately, and many have been saying that it was due a correction. Others are also attributing the drop to US President Joe Biden’s reported comments about the introduction of capital gains tax reform that would affect the country’s ultra-wealthy and mean investors paying more on their Bitcoin profits.
It’s important to zoom out at times like these and look at the massive gains this year, even if we include the recent fall. BTC has also done this before. In late February, the coin dropped from $57,000 to $45,000 a week later. Two weeks after that, it was above $60,000 for the first time. Will history repeat itself this time?
All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com 🙏🏻
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,785,127,735,290, down from $2,018,845,657,456 yesterday.
What Bitcoin did yesterday
We closed yesterday, April 22 2021, at a price of $51,762.27 – down from $53,906.09the day before.
The daily high yesterday was $55,410.23 and the daily low was $50,583.81.
This time last year, the price of Bitcoin closed the day at $7,117.21. In 2019, it closed at $5,399.37.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $902.63 billion, down from $1.014 trillionat this time yesterday. To put that into context, the market cap of gold is $11.349 trillion and Alphabet (Google) is $1.524 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $87,573,106,119, up from $60,417,126,215 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 47.04%.
Fear and Greed Index
Market sentiment remains in Greed, though it’s down from 65 to 55 today.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 52.48, upfrom 51.28 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 30.28, down from 39.55yesterday. 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
“By combining miners with renewables and storage projects, we believe it could improve the returns for project investors and developers, moving more solar and wind projects into profitable territory. [And] allow for the construction of solar and wind projects even before lengthy grid interconnection studies are completed… [and] provide the grid with readily available ‘excess’ energy for increasingly common black swan events like excessively hot or cold days when demand spikes.” – ‘Bitcoin Is Key To An Abundant, Clean Energy Future’
What they said yesterday
True?
The antidote for oppressive government and runaway taxes is….#Bitcoin. — Tim Draper (@TimDraper) April 22, 2021
Protect your Bitcoin…
Sometimes bitcoins have to find a better home. — Michael Goldstein (@bitstein) April 23, 2021
Did someone say ‘pastel de nata’?
#Bitcoin capital gains are not taxed in Portugal 🍻 — Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) April 22, 2021
Philosophical as always…
Bitcoin has been through far worse.
We’re still in a bull run.
HODL✊ — Dan Held (@danheld) April 23, 2021
Crypto AM Editor writes
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April
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AIBC World
May 25 to 26 2021 – Dubai
https://aibc.world/events/uae/general-info/
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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.