PayPal a-palooza for crypto markets as Bitcoin throws flash crash, but all is calm again
Crypto at a glance
Bitcoin climbed again overnight, as the price continued to push past $59,000 and closer to another new all-time high.
A flash crash this morning, however, has seen the leading cryptocurrency fall back to $58,000, though it remains up over the last 24 hours and the upward momentum already looks to be back on track.
The latest price charge comes on the back of news that PayPal is to start allowing consumers in the US to spend a range of currencies at online merchants, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The initiative will allow consumers to make purchases with over 29 million online merchants worldwide around the world.
PayPal’s move is just the latest in a stream of major announcements that have moved cryptocurrency closer to mainstream acceptance this quarter.
Bitcoin is now looking to end Q1 of 2021 with its biggest Q1 gain for eight years. It’s up more than 100 per cent at time of writing, outperforming the second-best performing asset, oil, which is up 26 per cent. Bitcoin is now up more than 1,000 per cent from the March 2020 lows.
It was a strong performance generally yesterday in the cryptocurrency markets, with Ethereum (ETH) also buoyed by PayPal’s announcement. The second-largest cryptocurrency by market cap continues to push above $1,800, though is still yet to seriously threaten the psychologically all-important $2,000 level it broke last month.
Binance Coin (BNB) had a particularly good showing and is up almost 7 per cent, while Filecoin (FIL) was also up almost 20 per cent, continuing the recent streak of gains that followed institutional crypto investment giant Grayscale’s decision to launch a Filecoin trust.
All this means that the total market cap of crypto is approaching $2 trillion again. How long before we break that level?
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The Bitcoin economy
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is $1,878,404,221,948 yesterday, up from $1,841,128,747,142 yesterday.
What Bitcoin did yesterday
We closed yesterday, March 30 2021, at a price of $58,917.69 – up from $57,750.20 the day before. It’s now 24 days in a row that the price has closed above $50,000.
The daily high yesterday was $59,447.22 and the daily low was $57,251.55.
This time last year, the price of Bitcoin closed the day at $6,429.84. In 2019, it closed at $4,106.66.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is $1.109 trillion at time of writing, up from $1.088 trillion yesterday. To put that into context, the market cap of gold is $10.807 trillion and Alphabet (Google) is $1.382 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $54,806,573,428 according to CoinMarketCap, down from $59,100,973,394 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 55.31%.
Fear and Greed Index
Market sentiment is back in Extreme Greed again at 76.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 60.92. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 61.64. 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
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet.
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants”
PayPal head Dan Schulman, speaking yesterday
What they said yesterday
The bull run takes a spicy turn…
Bitcoin is up a $1000 since this tweet…
Woah…
Good thread…
Crypto AM Editor writes
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March 31 to April 1 2021 – Dubai
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April 6 to 7 2021 – Tokyo
https://www.weforum.org/events/global-technology-governance-summit-2021
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. CityAM, 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.