Thursday Thoughts: Bitcoin at $37k Amid Chaos
Good morning. The entire cryptocurrency market capitalization is now $1 trillion. Good times amid chaos happening on the other side of the world.
Welcome to Thursday Thoughts, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad.
Market Price as of January 7, 2021:
Bitcoin closed January 6, 2021, at $36,334 per BTC. We’re up 28% in the last 7 days and 28% since the year began. This is a new all-time high.
Bitcoin’s market capitalization stands today at $687,306,034,071 which is 67.44% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,019,007,511,188
On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.
Total cryptocurrency market value hits record $1 trillion
Bitcoin has already gained 25% in January, following its more than 300% gain in 2020. Ethereum has also soared over the past 12 months, reaching a total gain of roughly 860% Wednesday after trading above $1,200 for the first time since early 2018.
“Is it frothy? A little bit in the short term,” said Qiao Wang, co-founder of decentralized finance (DeFi) accelerator firm DeFi Alliance and former quantitative trader at Tower Research. “But is it ridiculous,” he asked rhetorically. “Nope.” (Zack Voell, Coindesk)
Dip-buying bulls push Bitcoin price to a new all-time high at $36,574
Bitcoin’s latest breakout defies warnings that the market could be facing overbought resistance in the near future. An overheated futures market and large liquidations from some of Asia’s largest holders raised the possibility of a short-term pullback.
So far, Bitcoin’s digital-gold narrative appears to have squashed any semblance of a major pullback as institutions and retail traders buy the dips. As Cointelegraph recently reported, Bitcoin is experiencing a supply shortage as major buyers like Grayscale and PayPal continue to scoop up all of the newly mined BTC. (Sam Bourgi, Cointelegraph)
Ethereum price breaks past $1,200 as it nears an all-time high
Ethereum won’t be left behind in the bull run that has taken hold of the crypto market. Traders today are continuing to push the price up, taking ETH above $1,215 per coin. It’s the second most bullish candle ever recorded for the price of ETH since its all-time high of around $1,400.
The only time Ethereum closed above this threshold with a bullish daily candle was on January 27, 2018. At the time, a failed price correction then initiated one of the worst price declines in the history of the crypto market. (Jose Antonio Lanz, Decrypt)
Corporate cash could fuel a Bitcoin ‘Torrent’
“If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into Bitcoin instead of cash, then the current relative trickle into Bitcoin would become a torrent,” Miller of Miller Value Partners LLC wrote in a blog post published Jan. 5. (Vildana Hajric, Bloomberg)
What else is happening
- Trading desks are staffing up in anticipation of a prolonged Bitcoin bull run. (Frank Chaparro, The Block)
- Bitcoiner loses almost $100K of BTC in wallet transfer bungle. (Turner Wright, CoinTelegraph)
- Is an Ethereum-Driven Altcoin Season Around the Corner? (Christopher Attard, The Defiant)
This article is published on BitPinas: Thursday Thoughts: Bitcoin at $37k Amid Chaos