Tether settles with the NYAG and Square buys the dip, sparking rapid recovery for crypto markets
Crypto at a glance
Was that the dip? Just when it looks like you’re going to be able to buy crypto at a huge discount, bam! Yet another corporate giant starts buying and it’s back up we go. Can the recovery now be sustained? Is $50,000 the new bottom for BTC?
After Monday’s drama saw Bitcoin plunge to as low as $45,000, a stream of good news yesterday has since seen the leading cryptocurrency bounce back almost immediately and it’s now stabilised above $50,000 again.
First, in a huge show of confidence, Square announced the purchase of $170 million worth of Bitcoin – adding a further 3,318 to their previous 4,709 bitcoin purchase last year. This means 5% of Square’s total cash is now stored in Bitcoin.
Then there was more good news with the settlement of a long-running legal dispute between Tether Ltd, the company behind the stablecoin Tether and the New York Attorney General’s office – removing a potential systemic threat to cryptocurrency markets.
There were also strong recoveries elsewhere. Ether is back up at $1,700, ADA is over a dollar again, and BNB continues to look strong at around $270. The total market cap of the entire crypto market is back over $1.5 trillion again after dipping yesterday.
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In the Markets
Crypto market cap: $1,543,312,863,326
MVIS CryptoCompare Digital Assets 100 Large-Cap Index +7.43
MVIS CryptoCompare Digital Assets 100 Small-Cap Index +10.58
MVIS CryptoCompare Ethereum VWAP Close Index +9.49
Prices and data as of [08:30, 24/02/2021] Source: CryptoCompare.com, MVIS
The Bitcoin Economy
*Definitions and insights can be found at https://bytetree.com/insights/
What Bitcoin did yesterday
We closed yesterday, February 23 2021, at a price of $48,824.43 – down from $54,207.32 the day before.
The daily high yesterday was $54,204.93 and the daily low was $45,290.59.
This time last year, the price of Bitcoin closed the day at $9,924.52. In 2019, it was $4,142.53.
As of today, buying Bitcoin has been profitable for…
99.9% of all days since 2013-04-28.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is currently $944,091,976,749, up from $900,855,654,514 yesterday. That means it is still the eighth largest asset in the world by market cap, ahead of Tencent in ninth and more than $150 billion bigger than Facebook.
Bitcoin volume
The volume traded over the last 24 hours was $100,328,317,079, up from $98,418,440,819 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 86.55%.
Fear and Greed Index
Market sentiment remains high despite the recent volatility, though it has dropped from 94 to 76 again. We’ve spent fewer than seven days outside of Extreme Greed since November of last year.
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 61.95. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 58.33. 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
“Based on the trajectory of this digital gold path and use cases globally, we believe Bitcoin will be a mainstream asset class in the future. While gold has clear value and safety, the upside in bitcoin is eye-popping if it stays on its current course over the next decade.”
Daniel Ives Managing Director and Senior Equity Research Analyst at Wedbush Securities
What they said yesterday
Poor Charles, it really feels like Twitter just doesn’t want him to have that blue tick…
See what you did there?
Central banks are coming?
Very…
A wise move? You decide…
Crypto AM Editor Writes
Markets respond after Bitcoin pierces $50,000 to reach new all-time-high
https://cityam.ca/markets-respond-after-bitcoin-pierces-50000-to-reach-new-all-time-high/
Breaking: Bitcoin smashes through $50,000
https://cityam.ca/breaking-news-bitcoin-smashes-through-50000/
Crypto AM: Longer Reads
CityAM Markets: What is Decentralised Finance (DeFi) by Aave
https://cityam.ca/what-is-decentralised-finance/
Crypto AM: Conversation with James Bowater
https://cityam.ca/native-tokens-on-cardano/
Crypto AM: Market View in association with Ziglu
https://cityam.ca/bitcoin-price-tests-50000-high-as-corporate-adoption-boosts-legitimacy/
Crypto AM: Technically Speaking in association with with Zumo
https://cityam.ca/how-sports-teams-are-using-blockchain-to-recoup-2020s-losses/
Crypto AM: Talking Legal
https://cityam.ca/new-report-highlights-lack-of-awareness-on-modern-slavery-in-fintechs/
Crypto AM: Spotlight
https://cityam.ca/crypto-am-shines-its-spotlight-on-totemfi/
Crypto AM: Founders Series
https://cityam.ca/dr-ben-goertzel-the-crusade-against-the-oligopolies/
Crypto AM: Industry Voices
https://cityam.ca/this-is-just-the-beginning-of-the-crypto-revolution/
Crypto AM: Deeper Dives
https://cityam.ca/ledger-customers-exposed-as-personal-data-is-leaked/
Crypto AM: A Trader’s View with TMG
https://cityam.ca/bitcoin-culture-in-the-mainstream/
Crypto AM: Tiptoe through the Crypto with Monty Munford
https://cityam.ca/profile/crypto-am-tip-toe-through-the-crypto/
Crypto AM: Definitively DeFi
https://cityam.ca/defi-bursts-onto-the-finance-scene-what-is-it-and-why-does-it-matter/
Crypto AM: Recommended Events:
What’s Next for Crypto Webinar
Baker Botts & Team Blockchain
March 3 2021, 17:00 GMT
Webinar – Baker Botts & TeamBlockchain – What’s Next for Crypto? (on24.com)
CC Forum
Global Investment in Sustainable Development
March 31 to April 1 2021 – Dubai
https://dubai.cc-forum.com
Global Technology Governance Summit
April 6&7 2021 – Tokyo
Global Technology Governance Summit | World Economic Forum
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.