Daily market update: FED’s inflation update sparks Bitcoin movement?
It’s Friday! Another week, another SAT. There was big news for the US economy yesterday as Federal Reserve Chairman Jerome Powell said the central bank will readdress its previous 2% inflation target over the next decade. But will it have long-term implications for crypto?
Here are all the latest metrics so you can see if there’s been any impact from the announcement in the short term, at least. If you’re new to the world of crypto trading, take a look through our beginner’s guide to crypto trading series, starring in-depth explorations of common strategies, market analysis techniques, and more.
The content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:00am BST
We closed yesterday, 27 August 2020, at a price of $11,323.40 – with a daily high of $11,570.79 and a low of $11,185.94.
The closing price is the lowest it’s been since 4 August, 2020. On the same date last year, the closing price was $10,185.50.
We’re 43.63% below bitcoin‘s all-time high of $20,089 (17 December 2017).
As of today, buying bitcoin has been profitable for…
95.4% of all days since 2013-04-28.
The volume traded yesterday was $23,240,415,076 – up from $22,466,660,958 the day before.
Bitcoin’s market capitalisation as of yesterday was $209,172,436,817, up from $212,210,534,428 the day before. To put that into context, Jeff Bezos’s net worth is $188,500,000,000, which means he could only buy 90.12% of all Bitcoin. You can’t have everything, Jeff!
Fear and Greed Index
We’re back down another 1 point to 74, the lowest the index has been since 4 August. This is the first time since 12/13 August we’ve spent 2 consecutive days in the Greed zone. Extreme fear can be a sign that investors are too worried, which could be a buying opportunity. When Investors are getting too greedy, that means the market may be due for a correction.
Bitcoin’s market dominance
Bitcoin’s market dominance stands at 61.52. Its lowest recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 50.16. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience correction in price. – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Resistance and support
What they said yesterday…
“The Federal Reserve announced a major policy shift Thursday, saying that it is willing to allow inflation to run hotter than normal in order to support the labor market and broader economy.”
The beginning of the end of fiat.#bitcoinhttps://t.co/jeYBXeuxoT
— Charles Edwards (@caprioleio) August 27, 2020
#Bitcoin has come a long way in a very short period. Incredible to watch play out. pic.twitter.com/qu7CTKZtGD
— Felipe (@PhilCrypto77) August 27, 2020
Fidelity is one of the largest wealth managers on the planet.
– They have been quietly mining Bitcoin for ages.
– They just filed for a Bitcoin fund.
– They recently stated that 1/3 of institutions are already exposed to crypto.
You don’t think institutional money is here?
— The Wolf Of All Streets (@scottmelker) August 27, 2020
What other data points would you like to see covered in our Daily Report? Let us know on Twitter.