Bitcoin drops below $60k as markets cool off
The price of bitcoin yesterday closed below $60,000 for the first time in almost two weeks, with two minor flash crashes on Wednesday morning seeing the largest cryptocurrency fall to as low as $58k before recovering to around the $59k level, where it’s currently changing hands.
That’s down 2.5% since yesterday morning and 8.5% over the last 7 days. Can it push back to the levels we saw last week?
There doesn’t appear to any one cause for the crash, though commentators are speculating that it may be down to fading excitement around ETFs.
The launch of ProShares’ ETF has been widely credited as the main cause of bitcoin’s recent surge to a new all time high of $67k. The wider markets did also take a hit yesterday though, with the S&P 500 falling for the first time in 4 days, suggesting a degree of correlation.
As noted last week when the price was rising, investors should always be cautious of sudden price movements – whether up or down. Try to keep emotion out of your decision making and always do your own research. Most importantly, never invest more than you can afford to lose.
Major cryptocurrencies are down across the board this morning, with the global crypto market dropping to about $2.46 trillion this morning. Ethereum (ETH) is down 6% since this time yesterday, though still holding at around the 4k mark. Unlike Bitcoin, the second largest cryptocurrency failed to set a new all-time high last week, echoing earlier in the year when it also lagged behind Bitcoin. Will it again be a month behind, or did it miss its shot?
The only green shoot in a sea of red is meme coin Shiba INU (SHIB), which has grown by another 25% in the last day. It’s now flipped its fellow memecoin Doge, and it is the eighth largest coin by market cap. This also puts it ahead of Polkadot (DOT) and just behind XRP. Can it continue its remarkable run?
The rise in the price of SHIB came as a petition “designed to kindly request of Robinhood to please list shiba inu coin to trade” circulated on the website Change.org. The retail market’s fixation on SHIB could suggest frothy speculation among more casual investors, with some analysts raising concerns that it’s a sign the market is too frothy.
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Yesterday’s Crypto AM Daily in association with Luno
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $2,572,548,009,134.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $1,144 trillion. To put it into context, the market cap of gold is $11.418 trillion and Facebook is $915.21 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $40,219,477,799. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
What they said yesterday….
Buy the dip
El Salvador’s charismatic young President Nayib Bukele confirmed that the government had ‘bought the dip’ yesterday and picked up 420 new Bitcoins.
It comes after El Salvador became the first country in the world to make Bitcoin legal tender, requiring all businesses in the country to accept the king of crypto alongside the US dollar.
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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.