Altcoins drop as JPMorgan holds Bitcoin price assessment

26 May 2022

Thursday 26 May 2022 11:11 am

The price of Bitcoin remains flat this morning, with low trading volume suggesting there is still indecision among investors about where we will go next.

The leading cryptocurrency is currently down around one per cent to around $29,200 at time of writing. However, most alternative cryptocurrencies are trading lower, with the Ethereum price down almost eight per cent to just above $1,800 as investors continue to move away from assets considered riskier options.

Other major digital assets such as Solana are down 10 per cent or more. The decline follows the release yesterday of minutes from the recent US Federal Reserve committee meeting, which indicated that multiple 50 basis point interest rate increases could occur over the next several meetings.

Despite the recent slump, it appears many institutional investors are confident that this could be an opportunity. Banking giant and former crypto sceptic JPMorgan said this week maintained its estimate of Bitcoin’s fair value at $38,000, with the bank reiterating the assessment it gave the asset in February when the cryptocurrency was trading around $43,400.

Does this mean investors are getting a bargain at current prices, or are models off the mark?

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The Bitcoin economy

*Definitions and insights can be found at https://bytetree.com/research

Total crypto market cap

The total capitalisation of the entire cryptocurrency market at time of writing is currently $1.247 trillion.

What Bitcoin did yesterday

We closed yesterday, May 25 2022, at a price of $29,562.36. The daily high yesterday was $30,157.78 and the daily low was $29,384.95.

Bitcoin market capitalisation

Bitcoins market capitalisation at time of writing is $561.64 billion. To put it into context, the market cap of gold is $11.717 trillion and Tesla is $682.52 billion.

Bitcoin volume

The total spot trading volume reported by all exchanges over the last 24 hours was $27.569 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.

Volatility

The price volatility of Bitcoin over the last 30 days is 54.24%.

Fear and Greed Index

Market sentiment today is 12, in Extreme Fear.

Bitcoins market dominance

Bitcoin’s market dominance today is 46.04. Its lowest ever recorded dominance was 37.09 on January 1 2018.

Relative Strength Index (RSI)

The daily RSI is currently 37.01. 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.