Digital assets begin to claw back after significant drops
MOST cryptocurrencies are up overnight following yesterday's major sell-off.
Bitcoin's price has increased by about 5% over the past 24 hours after shedding over 10% yesterday.
Ethereum's price rose 5.8% overnight. Notable bounce-backs include Solana (+14%) and Aave (+17%), with a few others returning 10% to investors overnight.
The Fear and Greed Index is still very much in Fear, having fallen to 34 from 60 in the last few days.
After financial markets suffered one of the worst days since the pandemic in 2020, there are talks of the Federal Reserve meeting to discuss an emergency rate cut to calm the storm.
While economists say an emergency rate cut is unlikely, they do expect the Fed to start trimming rates in their September meeting. Historically, risk-on assets like crypto and stocks perform better in low-rate environments.
In the Markets
Total crypto market cap
$1.97 trillion (+7.05%)
What Bitcoin did yesterday
Daily high $58,291 | Daily low $49,486
Bitcoin market capitalisation
$1.08 trillion (+5.04%)
Bitcoin volume
$75 billion (-0.57%)
CoinDesk Large Cap Select Index
+5.87%
The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market.
SP500
-3%
Fear and Greed Index
34 (Fear)
The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.
Bitcoin’s market dominance
56.79
The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.
Bitcoin Relative Strength Index (RSI)
27
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, while 30 or below indicates an oversold or undervalued condition.
Post Script…
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. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
