Pullback for crypto as traders weigh up the markets

THE market has seen pullback this morning, as traders continue to get to grips with what a Trump presidency will mean for crypto.

There are low drops pretty much across the board over the last 24 hours, with the price of Bitcoin dipping 2.5% and Ethereum down by around the same amount.

There was no huge news for Web3 followers yesterday from Trump, though his decision to pardon jailed former dark web impresario Ross Ulbricht will have delighted the more libertarian crypto devotee.

There’s also interesting potential implications for AI-related cryptocurrencies from Trump’s announcement of a new joint venture, called 'Stargate', which plans to invest $500 billion in building new AI infrastructure in the United States.

While Trump’s barrage of legislative activity is dominating the eyeballs of most traders, it’s worth also keeping an eye on the action at the World Economic Forum in Davos. Yesterday saw BlackRock CEO Larry Fink take to the stage, where he argued that investors putting just 5% of their portfolio in Bitcoin could see the price jump as high as $700k.

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In the Markets

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Total crypto market cap

$3.5 trillion (-3.24%)

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What Bitcoin did yesterday

Daily high $106,294 |  Daily low $103,360

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Bitcoin market capitalisation

$2.02 trillion (-3.05%)

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Bitcoin 24-hour trading volume

$63.09 billion (-11.30%)

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SP500

+0.61%

Fear and Greed Index

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI) (14)

49.61

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.

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Post Script…

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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.

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