Daily market update: “MicroStrategy is raising $400 million to buy more bitcoin”

by Team Luno
· 3 minute read

If you leave 2020 having only learnt 1 thing, it should be that Michael Saylor loves Bitcoin. He loves it so much, he’s borrowing to buy more – $400 million worth more to be precise.

Has MicroStrategy’s latest moves had an impact on the market? Here’s today’s report. If you’re new to the world of crypto, take a look through our beginner’s guide to crypto trading series to get a better idea of all these indicators, 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 06.30am GMT.

Bitcoin price

We closed yesterday, 7 December, 2020, at a price of $19,191.63 – down from $19,345.12 the day before.

The daily high yesterday was $19,411.83. That’s 8 consecutive daily highs over $19,000. The daily low was $18,931.14. That’s the highest daily low since 17 December 2017 and the second highest in history. This time last year, the price of bitcoin closed the day at $7,556.24 and in 2018 it was $3,419.94.

We’re 4.47% below bitcoin‘s all-time high on CoinMarketCap of $20,089 (17 December 2017).

Bitcoin volume

The volume traded yesterday was $26,896,357,742, down from $25,293,775,714 the day before. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.

Market capitalisation

Bitcoin’s market capitalisation as of yesterday was $356,293,229,783, down from $359,123,541,247 the day before.

To put that into context, Mastercard’s market cap is $339.91 billion – VISA’s market cap is roughly $470 billion, which would require bitcoin to hit a price of more than $25,000 if it were to exceed.

If you’re still not gauging the scale of these numbers, in 2019, the United States spent around $718.69 billion on its military. So it could have paid for about half of that with all the world’s bitcoin. That’s a lot of lightbulbs.

Fear and Greed Index

Sentiment is back at a record-equally 95 again. We’ve now been in Extreme Greed for over a month. It’s important to remember that the index doesn’t stay this high very often and a correction could be on the cards.

Bitcoin’s market dominance

Bitcoin’s market dominance stands at 63.63. Its lowest recorded dominance was 37.09 on 8 January, 2018.

Relative Strength Index (RSI)

The daily RSI is currently 60.62. 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.

Google trends

The trend in Google searches over the last 90 days. Google shows this chart on a relative basis with a max score of 100 on the day that had the most Google searches for that keyword.

Charts provided by IntoTheBlock.com

In/Out of the money

For any address with a balance of tokens, ITB identifies the average price (cost) at which those tokens were purchased and compares it with the current price. If the current price is higher than average cost, address is ‘In the Money’. If the current price is lower than the average cost, the address is ‘Out of the Money’.

Charts provided by IntoTheBlock.com

Volatility

Annualised price volatility using 365 days.

Charts provided by IntoTheBlock.com

Twitter sentiment

Yesterday, there were 9,941 tweets sent with a positive connotation towards bitcoin, 28,576 with a neutral connotation, and 2,122 were negative.

Charts provided by IntoTheBlock.com

What they said yesterday…

What other data points would you like to see covered in our Daily Report? Let us know on Twitter.

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