Relative calm in crypto markets disturbed as Coinbase lets the Doge out

Crypto at a glance

Unexpected greetings from Dubai where I am now stuck for the next few days! Meanwhile the crypto market has enjoyed a relative period of calm so far this week, bobbing like a well-fed boar in a shallow lake. But will it last?

Bitcoin continues to trade within a very narrow channel between $33k and $38k, currently changing hands at just above $37,000 – a bargain when you consider it was more than $60,000 only a few weeks ago.

There doesn’t seem to be any imminent chance of the leading cryptocurrency by market cap surging to a new all-time high, but is this relative stability a sign of price consolidation ahead of a recovery? The last time price swings were this low was just before the bull run in the first four months of 2021. Is the same happening here, or are we simply passing an old friend on the way back down?

The chilled out vibes appear to be catching today, with other leading cryptocurrencies also seeing limited movement. They do look like they’re heading in the right direction, though. Ethereum is up five per cent over the last 24 hours and selling for more than $2,700 again, while Cardano (ADA) continues its good run with another seven per cent gain today. ADA is currently trading at $1.80 – can it hit $2 again? Despite recent gains, ADA has once more fallen behind Binance Coin (BNB) which also surged again yesterday, though you’d fit a Rizla between third to sixth in the market cap rankings.

The big news today is Dogecoin’s listing on Coinbase Pro, which has sent the meme-coin up 20 per cent in the last day. It’s currently trading at just below $0.40, with Elon Musk subjecting the world to an onslaught of bullish tweets to accompany the rise. It was briefly the fourth largest cryptocurrency by market cap last month. Can it flip Cardano and Binance Coin to repeat the feat?

All feedback on Crypto AM Daily in association with Luno is welcome via email to James.Bowater@cityam.com 🙏🏻

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 $1,646,717,473,182.

What Bitcoin did yesterday

We closed yesterday, June 1 2021, at a price of $36,684.92 – down from $37,332.85 the day before.

The daily high yesterday was $37,896.74 and the daily low was $35,787.09.

This time last year, the price of Bitcoin closed the day at $10,199.56. In 2019, it closed at $11,206.44.

Bitcoin market capitalisation

Bitcoin’s market capitalisation at time of writing is $695.01 billion. To put it into context, the market cap of gold is $12.071 trillion and Facebook is $933.23 billion.

Bitcoin volume

The total spot trading volume reported by all exchanges over the last 24 hours was $33,106,906,363, down from $36,993,518,743 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 86.77%.

Fear and Greed Index

Market sentiment today is 23.

Bitcoin’s market dominance

Bitcoin’s market dominance today is 42.52, Its lowest ever recorded dominance was 37.09 on January 8 2018.

Relative Strength Index (RSI)

The daily RSI is currently 38.12. 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

“I found the problem [that bitcoin solves]: When we did the CARES act and Chairman Powell started crossing all sorts of red lines in terms of what the Fed[eral Reserve] would do and wouldn’t do. The problem was Jay Powell and the world’s central bankers going nuts and making fiat money even more questionable than it already has been when I used to own gold.”

– Stanley Druckenmiller, American billionaire

What they said yesterday

Hope…

Regrets…

Always worth a reminder…

Crypto AM Editor writes

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Crypto AM: Longer Reads

City AM Markets: What is Decentralised Finance (DeFi) by Aave

Crypto AM: Conversation with James Bowater

Crypto AM: Market View

Crypto AM: Technically Speaking

Crypto AM: A Trader’s View with TMG

Crypto AM: Mixing in the Metaverse with Dr Chris Kacher

Crypto AM: Talking Legal

Crypto AM: Spotlight

Crypto AM: Founders Series

Crypto AM: Industry Voices

Crypto AM: Tiptoe through the Crypto with Monty Munford

Crypto AM: Definitively DeFi

Crypto AM Parliamentary Special

Part one of two – April 2021

Part two of two – April 2021

Five-part series – March 2021

Part one…

Part two…

Part three…

Part four…

Part five…

Crypto AM: Recommended Events

Bitcoin 2021

June 3 to 5 2021 – Miami

https://b.tc/conference

Crypto AM City of London Roundtable

Crypto AM DeFi & Digital Inclusion Summit

&

Crypto AM Awards 2021

September 29 and 30 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. 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 08:30am GMT.