The ship’s taking on water, but Bitcoin could be the lifeboat we all need
![](https://www.cityam.com/wp-content/uploads/2021/11/crypto-am-daily-5.jpeg?w=512)
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
Would you like to help spread the adoption and education of Bitcoin in the UK and even stack some Sats while you’re doing it? Well, now you can!
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.
We share tips, stories and ideas on how to encourage others to try Bitcoin for the first time. And, thanks to support from Luno, each Pioneer gets £500 of Bitcoin a month to share with beginners, helping them get started.
So, if you’re passionate about Bitcoin, why not join today? Click here to find out more!
All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com 🙏🏻
Yesterday’s Crypto AM Daily in association with Luno
![price of Bitcoin](https://www.cityam.com/wp-content/uploads/2021/11/crypto-am-daily-5.jpeg?w=512)
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.
Bitcoin volume
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.
Volatility
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
Falling upward…
Tells you something…
Big things coming for Russia?
😂
Crypto AM: Editor’s picks
Exclusive: Fireblocks valuation climbs to $8bn in $550m funding round
![](https://www.cityam.com/wp-content/uploads/2022/01/Fireblocks.jpeg?w=960)
Crypto crazy couple name baby after favourite digital asset
![Cryptocurrency-loving parents Bruno Karno and his wife Agatha have named their first-born Cardano in honour of their favourite crypto.](https://www.cityam.com/wp-content/uploads/2022/01/DSC05702-e1641920873613.jpg?w=1024)
Bitcoin hashrate touches new all time high
![Bitcoin mining company - Illustrations of Cryptocurrency](https://www.cityam.com/wp-content/uploads/2021/08/Bitcoin-Illustrations-of-Cryptocurrency-1320843458.jpg?w=1024)
Peter McCormack: Transforming Bedford FC into a global Bitcoin brand
![In an interview with Crypto AM, Bitcoin investor and podcaster Peter McCormack opens up about his purchase of Bedford FC.](https://www.cityam.com/wp-content/uploads/2021/12/Peter-McCormack-horizntal-.jpg?w=1024)
Exclusive: FTSE plots development of digital asset index in crypto push
![FTSE Continues To Fall Amid Growing Concerns Over Recession](https://www.cityam.com/wp-content/uploads/2020/11/FTSE-Continues-To-Fall-Amid-Growing-Concerns-Over-Recession-83416864-scaled.jpg?w=960)
Crypto could give London a unique post-Brexit advantage, says Hammond
![This image has an empty alt attribute; its file name is 001-philip-hammond-cutout-57ed5191a2921-57ed5191b2a36.jpg](https://www.cityam.com/wp-content/uploads/2013/12/001-philip-hammond-cutout-57ed5191a2921-57ed5191b2a36.jpg?w=839)
Diamond claws: Crypto trading hamster dies after standout investing career
![The first hamster to become a crypto investment guru, Mr Goxx, has died of unknown causes.](https://www.cityam.com/wp-content/uploads/2021/11/Mr-Goxx-dead.jpeg?w=1024)
New cryptocurrency named ‘JRR Token’ blocked by lawyers for Lord of the Rings creator Tolkien
![This image has an empty alt attribute; its file name is ring-g1445cfd83_1920.jpg](https://www.cityam.com/wp-content/uploads/2021/11/ring-g1445cfd83_1920.jpg?w=960)
Crypto AM: Features
Crypto AM: Founders Series
![](https://www.cityam.com/wp-content/uploads/2020/07/GettyImages-1169704211.jpg?w=960)
Crypto AM: Industry Voices
![Changpeng 'CZ' Zhao, CEO of Binance](https://www.cityam.com/wp-content/uploads/2021/07/CZ-Binance.jpg?w=960)
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowater
![Charles Hoskinson and James Bowater landscape](https://www.cityam.com/wp-content/uploads/2021/04/Charles-Hoskinson-and-James-Bowater-landscape-scaled.jpg?w=960)
Crypto AM: Tomorrow’s Money with Gavin S Brown
![Tomorrow's Money with Gavin S Brown](https://www.cityam.com/wp-content/uploads/2021/11/Gavin-S-Brown-Crypto-AM.jpg?w=960)
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
![Dr Chris Kacher Mixing in the Metaverse](https://www.cityam.com/wp-content/uploads/2021/08/Dr-Chris-Kacher-Mixing-in-the-Metaverse-4.jpg?w=902)
Crypto AM: Visions of the Future, Past & Present with Alex Lightman
![Alex Lightman Visions of the future, past and present](https://www.cityam.com/wp-content/uploads/2021/08/Alex-Lightman-Visions-of-the-future-past-and-present.jpg?w=960)
Crypto AM: Tiptoe through the Crypto with Monty Munford
![Monty Munford robbed out header](https://www.cityam.com/wp-content/uploads/2021/08/Monty-Munford-robbed-out-header.jpg?w=903)
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
![Jonny Fry Taking a Byte out of Digital Assets](https://www.cityam.com/wp-content/uploads/2021/11/CAMD-G89-1024-JFry-copy-6.jpg?w=960)
Crypto on the catwalk
![Stefania Barbaglio Crypto on the Catwalk](https://www.cityam.com/wp-content/uploads/2021/09/CAMD-G89-1024-SBarbaglio.jpg?w=960)
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
Part One
https://www.youtube.com/watch?v=dvqNMNZTIDE
Part Two
https://www.youtube.com/watch?v=WXhX_-Tr5j0
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 08:00 BST