Sharpest inflation increase since 2008 fails to drive Bitcoin demand
Crypto at a glance
The crypto markets are down again today, with both Bitcoin and Ethereum prices falling to levels not seen since late June. Almost all cryptocurrencies are down today. Can they recover ahead of the weekend?
Bitcoin is now in its eighth straight week stuck in the range of between roughly $30,000 and $40,000. It was below $32k for the first time since June 26 today, down almost four per cent over the last 24 hours. Ethereum is also below $2,000, down roughly seven per cent in the last day and 20 per cent over the past week – more than any other of the top 10 largest coins by market cap, although they’re also showing significant reductions.
The drops continue in spite of the US Department of Labor’s announcement yesterday of the sharpest 12-month inflation increase since 2008 in its June 2021 Consumer Price Index. Consumer prices have risen 5.4 per cent over the last year, as the economy recovers from the pandemic. The Fed has said the effects are “transitory” and kept interest rates low in an attempt to stimulate growth, but many are questioning whether inflation will last longer.
Bitcoin fans spent most of yesterday pointing to the deflationary nature of Bitcoin due to its fixed, predictable supply of 21 million coins. However, their proclamations seem to have made little dent in the Bitcoin price.
This could be because the increase is still considered transitory at the moment, though business owners are increasingly pointing to rising labour costs, which could indicate sustained price increases. Will it need to be a sustained increase to have an impact on consumer demand?
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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 $1,293,046,499,403.
What Bitcoin did yesterday
We closed yesterday, July 13 2021, at a price of $32,702.03, down from $33,155.85, the day before.
The daily high yesterday was $33,327.10 and the daily low was $32,261.42.
This time last year, the price of Bitcoin closed the day at $9,243.21. In 2019, it closed at $10,256.06.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $597.62 billion. To put it into context, the market cap of gold is $11.515 trillion and Facebook is $998.33 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $20,653,257,032, down from $22,184,868,490 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 62.81%.
Fear and Greed Index
Market sentiment today is 21.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 46.65, Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 40.24. 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
“Gold is about a $10 trillion asset category and Bitcoin is $1 trillion, and it’s infinitely divisible or almost so. It’s easily transportable and can be sent anywhere in the world if you have a smart phone so it’s a much better version, as a store of value, than gold.”
– Bill Miller, American investor
What they said yesterday
Inflation…
Born lucky…
Grayscale making moves…
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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 08:00 BST
Original Source