The volatility shadowing the crypto sector seems to have risen in recent days amid the US mulling over raising its debt ceiling to fight against inflation. Bitcoin on Thursday, May 25, reflected a loss of 2.15 percent on the crypto price tracker. At the time of writing, the trade value of Bitcoin stood at the price point of $26,077 (roughly Rs. 21.5 lakh). In the last 24 hours, Bitcoin dropped by a substantial $1,068 (roughly Rs. 88,358) on both national as well as international price charts.
Ether joined Bitcoin in losses on Thursday. After having incurred a dip of 2.52 percent, the value of ETH slipped to $1,775 (roughly Rs. 1.46 lakh) — marking ETH’s lowest value in at least two weeks. The second most valued cryptocurrency after BTC, Ether lost $71 (roughly Rs. 5,873) from its price over the last day.
According to the crypto price tracker by Gadgets 360, majority cryptocurrencies are trading in the reds, indicating at losses today.
These include Tether, Binance Coin, Ripple, Cardano, Polygon, Solana, Tron, and Polkadot among others.
Dogecoin and Shiba Inu along with Avalanche, Leo, Chainlink, Uniswap, and Monero also failed to grab any profits.
The overall crypto market cap cascaded by 1.94 percent to reduce to the valuation of $1.10 trillion (roughly Rs. 91,08,820 crore), as per CoinMarketCap.
“Crypto markets have observed brisk selling pressure in the last 24 hours. Along with Bitcoin and Ether, the top ten cryptos by market capitalisation are currently trading in red due to the macroeconomic uncertainty around ongoing US debt ceiling talks. Investors are also assessing the latest Federal Reserve meeting minutes released yesterday. Meanwhile, BTC’s correlation with the NASDAQ index has fallen to its 17-month low, as per K33 Research,” Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, told Gadgets 360.
Meanwhile Cosmos, Braintrust, and Floki Inu reflected minor profits in the midst of majority loss-ridden altcoins.
“Lack of regulations continue to loom in the crypto ecosystem. China looks at making a prominent presence in Crypto amidst its growing positive stance and increasing patronage of blockchain technology. This could potentially impact the existing market as more and more crypto businesses are looking to head out of the US. Not to mention, the number of new users who could be onboarded would make the adoption rate significantly high,” Rajagopal Menon, Vice President, WazirX, told Gadgets 360.
In other news, Ava Labs, the company behind Avalanche (AVAX), has launched a no-code Web3 launchpad called AvaCloud. The platform is intended to allow companies to bring Web3 products faster and cost-effectively to the market.
The crypto market is, however, looking at more fluctuations in the coming times. Like the US, in the coming days, the UK is also expected to announce a hike in its interest rates.
“The UK core Consumer Prices Index (CPI) rate exceeded expectations, soaring to 6.8 percent, the highest since 1992. This persistent surge in core prices raises concerns as the Bank of England is likely to face mounting pressure to continue raising interest rates in the upcoming months,” the CoinDCX research team told Gadgets 360.
“In terms of digital asset investment products, there has been a consistent outflow totalling $232 million (roughly Rs. 1,919 crore) over five consecutive weeks. Interestingly, the Bitcoin network has now emerged as the second-largest platform for Non-Fungible Token (NFT) transactions, showcasing its growing presence in this market. Over the past month alone, Bitcoin has accounted for approximately $167.47 million (roughly Rs. 1,385 crore) worth of NFT sales, significantly surpassing competitors like Solana and Muthos Chain, which recorded sales of $55.8 million (roughly Rs. 461 crore) and $35.4 million (roughly Rs. 292 crore), respectively, during the same period,” the CoinDCX team added.
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