Friday’s Crypto AM Daily
The Week in review
With Jason Deane
The theme of last week’s summary was that the narrow trading range Bitcoin had been in for weeks was “boring, but necessary” as the underlying development work is being ground out without fanfare.
But that was last week.
This week, Bitcoin and the broader markets were very anything but boring as spectacular red candles rapidly filled our screens, caused by a multitude of factors including macroeconomic concerns and loss of industry confidence due to recent events with UST, Celsius and others.
Once that momentum sets in it becomes an unstoppable force and stays that way until something fundamental happens. It’s the same when the market enters a euphoric upwards phase as well of course, but those days seem very, very far away right now.
So what does all this mean? Is crypto dead? (again!) Is the dream of decentralised money over?
If this is your first bear market cycle it probably feels like it. It feels so dark and impossible to overcome.
And I completely understand where you’re coming from.
The first bear market that I had serious exposure to was the 2017/18 retail driven crash that saw Bitcoin run up from $700 up to $20,000 and then down to less than $5,000 over an eighteen month period, with a few “very red” days to boot. It was a strong – and painful – learning experience for someone who had only been in the industry for around a year at that point.
In retrospect we now know it was a very good thing. The market had become ridiculously overheated, full of scam ICOs, hopeless projects and all kinds of rubbish – all effectively wiped out by the crash. It took time for the dust to settle, but once it had, a new wave of development could begin, development that brought us to where we are today.
We will almost certainly say the same thing about this crash in years to come. We’re having a major clear out and, like getting rid of things we have an emotional attachment to, it can be painful. However, this will lead to a clear head and a new base from which to move forwards.
Of course, it should be apparent that Bitcoin is, in many ways, exempt from this process. If you measure the success of Bitcoin in simple dollar terms, you may disagree with that statement, but the reality is that as the world’s only truly decentralised network, it’s really not interested in what’s going on in the market. That’s a human concern.
Bitcoin simply keeps producing blocks every ten minutes and the dedicated devs keep doing what they’re doing regardless of what the markets are up to. In fact, bear markets are a great time to build, being free of distractions, market pressures and able to take advantage of supply line slack left over from the previous craziness. Those who are wise are building and accumulating.
I am, therefore, incredibly optimistic for the future.
To quote the meme loved by crypto Twitter “This is fine.”
And it really is, so have a great weekend!
Want to learn more about what’s going on in our global financial system and how Bitcoin fits in to it? Come to my next free webinar on Tuesday 21st June at 6pm to find out, ask any questions, and grab some free Bitcoin*. Click here to register.
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
In the markets
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/research
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $907 billion.
What Bitcoin did yesterday
We closed yesterday, June 16 2022, at a price of $20,381.65. The daily high yesterday was $22,868.92 and the daily low was $20,265.23.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $402 billion. To put it into context, the market cap of gold is $11.77 trillion and Tesla is $662.32 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $33,599 billion. 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 65.88%.
Fear and Greed Index
Market sentiment today is 9, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 45.31. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 24.64. 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
“Bitcoin doesn’t do what you want it to do. It does what it was designed to do.”
Natalie Brunell, Podcast Host
Crypto AM: Editor’s picks
MPs are falling silent over potential of cryptocurrency
Erica’s ‘Crypto Wars’ handed honours in Business Book Awards
‘Let people invest’: Matt Hancock makes case for liberal crypto rules
Explained: Why the Treasury is so sold on stablecoins
Fears crypto is used to avoid sanctions ‘misplaced,’ says Matt Hancock
Meet the hackers helping people recover lost crypto assets
The cryptocurrency fundraisers behind Ukraine’s military effort
Crypto crazy couple name baby after favourite digital asset
Peter McCormack: Transforming Bedford FC into a global Bitcoin brand
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
Part One
Part Two
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