New Delhi: The cryptocurrency cart was under immense pressure, thanks to a heavy sell-off globally. Major cryptocurrencies eroded up to one-fifth of investors’ wealth, with as many as seven currencies posting double-digit cuts.
Barring the dollar-pegged tokens, eight out of the top 10 cryptocurrencies were trading lower at 9.30 hours IST. Bitcoin and Ethereum declined more than 10 per cent, whereas Dogecoin and Polkadot plunged up to 20 per cent each.
The global crypto market cap tanked over 11 per cent to $2.11 trillion mark compared to the last day. However, the total crypto market volume swung wildly, rising up to 71 per cent to $241.26 billion.
“Solana has been going strong recently, and continues to outperform the market, minting strong profits. While the market has been a bit volatile, we expect a strong recovery soon,” said Sharan Nair, Chief Business Officer, CoinSwitch Kuber.
“Crypto market has been intensely volatile of late. The global market cap lost $180 billion as a massive selloff erupted across the market. It is one of the primary reasons traders should put a strict stop loss to hedge against such volatility,” said Edul Patel, CEO and Co-founder of Mudrex.
In the El Salvadoran beach town of El Zonte, a surfing hotspot called “Bitcoin Beach,” tourists and some residents heralded the president’s decision to make the Central American nation the first in the world to adopt the cryptocurrency as legal tender.
Bitso, a cryptocurrency platform, said it will be the core service provider for Chivo, the bitcoin digital wallet launched in El Salvador.
Back in India, new investors are flocking to Ethereum (ETH), which has seen a surge this year. The past few days have seen a spurt in Indian investors and traders buying the cryptocurrency on local exchanges and those that offer services in the country.
Domestic mutual fund investors could soon get an opportunity to invest in a global product that bets on companies involved in blockchain technology.
Invesco mutual fund has filed papers with the Securities and Exchange Board of India to launch a scheme, which will invest in Invesco Elwood Global Blockchain Exchange Traded Fund.
Tech View by ZebPay Trade Desk
BTC had a rather volatile evening yesterday. The asset saw a correction of about 20%, falling $52,000 to $42,800. Since then, however, it has seen a recovery, and was trading at $47,100 at the time of writing this report.
The reason for this crash is likely to be that a mass selling, roughly close to $3.5bn took place, as holders liquidated their BTC assets. Since then though, many have spotted an opportunity to build new positions, driving the asset back up to $47,000 levels.
Last week, BTC was consolidating and trading sideways in the $47,000 to $50,000 range. This week, the asset gave a breakout on the upside and prices rallied up to $52,944. However, BTC faced resistance and prices couldn’t sustain at higher levels for long and witnessed a sharp correction.
Technically, on a four-hour time frame, the asset made an ‘Evening Star’ pattern (Trend Reversal Pattern) as prices fell almost by 20% and made the low of $42,830. BTC has a very strong support at $46,500 and $42,500. If the prices hold and sustains above these levels, then we could expect bulls to resume the up move.
Support: $46,500, $42,500
Resistance: $53,000, $57,500
Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)